7 Things You Need To Know About Student Loans

The student loan process is one that causes frustration and confusion for many. It is easy to become overwhelmed by the many options and explanations that exist.

The seven must know points of reference will help in demystifying the process.

1. Federal Loan Alternatives
There are six types of federal loans.

Direct subsidized loans: Need-based loans for undergraduate students that demonstrate financial need. There are no interest payments.
Direct Unsubsidized: Loans for undergraduates with no requirement of financial need. Student responsible for interest
Direct plus loan: Loans for graduate and doctorate students. Credit-based
Direct consolidation loan: combines all student loans for repayment
Federal Perkins loans: Undergraduate loans for students with exceptional financial need
Parent Plus loan: An Undergraduate loan with low rates. Requires parent as a cosigner