Department of Education Student Loans

Congratulations, you've been accepted to college!  Now you need to figure out how you're going to pay for it.  While you may qualify for some scholarships and grants, you will most likely still need to pay for the rest of your education yourself.  There are a variety of student loans, each with their own specific benefits to help you fund your education.  Department of Education student loans may be the right fit for your personal situation.

Why Department of Education Loans?

Student loans through the Department of Education are, as the name indicates, loans granted by and guaranteed with the full backing of the federal government.  This provides the borrower with a level of "what you see is what you get" when it comes to loan terms, versus all the variations between different private student loans.

The most common loans offered through the Department of Education are Perkins, Stafford, and PLUS loans.  Each of these loans has specific advantages over the others.

Department of Education Loan Types

Many people choose Perkins loans because of their nine-month repayment grace period, so lenders don't have to begin paying on their loans until the tenth month after they graduate or leave school.  Perkins, as well as unsubsidized Stafford loans offer the added benefit of not accruing interest until you begin payment, however repayment on Stafford loans begins after six months.

PLUS loans are loans offered to parents who wish to fund their student's education, but don't have the cash on hand.  These loans have higher interest rates and are due for payment immediately, but of course the burden is off of the student.