Subsidized Stafford loans are issued by the federal government to students who qualify based on their Free Application for Federal Student Aid demonstrated need. Subsidized means that the government will pay the interest on the loans until you have completed school or are no longer attending at least half the time.
Like subsidized Stafford loans, these loans are also issued by the government and require the completion of a FAFSA. Students with unsubsidized loans must make interest-only payments while in college or have the interest accumulate, leaving them further in debt at graduation.
Payments for both subsidized and unsubsidized Stafford loans begin half a year after graduation or leaving school. The standard time for repayment is 10 years, and the extended repayment plan allows for payments over 12 to 30 years.
These loans are made by the federal government to parents. They carry a slightly higher interest rate than the Stafford loans. Parents may borrow up to the difference between the cost of attendance and the total other financial aid received.
Sometimes, federal loans won't cover the entire cost of college. Private loans are usually more expensive than government loans. The loan amount limits and interest rates are determined by the applicant's creditworthiness. Having a co-signer, such as a parent, may decrease the interest rate.