Loans can be another great resource for students. Securing a loan is all about knowing what you need and understating the terms.  You can get educational loans through the federal government. The government offers two types of loans: the Direct Subsidized Loans and the Direct Unsubsidized Loans.


The Direct Subsidized Loan

  • A loan available to college students who show financial need.
  • The amount you are able to borrow is determined by the school.
  • You cannot borrow more money than your financial need.
  • The U.S. Department of Education pays for all the interest on the Direct Subsidized Loan as long as: you’re in school at least half-time, for the first 6 months after you leave school, during a period of deferment. 


The Direct Unsubsidized Loan

  • Available to college and graduate students.
  • No requirement to show financial need.
  • Your school determines how much money you can borrow based on tuition costs.
  • The student is responsible for paying the interest on Direct Unsubsidized Loans during all periods.
  • Interest can accumulate and be added to the principal amount of your loan.


Private Loans

A private student loan may also be available through your bank or credit union, or even through the financial aid office of your school. Read the terms of your loan carefully, so you understand how and when the money needs to be paid back.