As our previous post explained, there are two major types of financial aid (Grant Aid and Self-Help Aid). This post will address the loan portion in more detail.

Federal Direct Subsidized Loans are loans administered by the federal government, for which you are not responsible for the interest accrued while in school. You may borrow up to $3,500/year through this loan program.

Federal Direct Unsubsidized Loans are loans administered by the federal government, for which you are responsible for the interest accrued while in school. You may borrow up to $2,000/year through this loan program.

Federal Perkins Loans are loans administered by the school’s financial aid office (meaning you will make payments back to the school). You may borrow up to $5,500/year via this loan program.

Private Student Loans are loans administered by a bank or private institution. These loan types vary depending on the source, but will typically have higher interest rates and less forgiving terms of repayment.

For more details on Federal Student Aid, watch the above video.