Appendix A

What types of federal student loans are there?

Federal Perkins Loans are:

Made through participating schools to undergraduate, graduate and professional degree students.

Offered by participating schools to students who demonstrate financial need.

Made to students enrolled full-time or part-time.

Repaid by you to your school.

Stafford Loans (Direct or FFEL) are for undergraduate, graduate and professional degree students. You must be enrolled as at least a half-time* student to be eligible for a Stafford Loan. There are two types of Stafford Loans: subsidized and unsubsidized made through these two U.S. Department of Education programs: Direct and FFEL (see next page regarding the distinction between these two programs). You must have financial need to receive a subsidized Stafford Loan.

Subsidized Stafford Loan: You are eligible for a subsidized Stafford Loan if you are in school at least half-time and have financial need. With a subsidized Stafford Loan, the federal government will pay the interest while you're enrolled at least half-time, during your grace period, and during deferment periods.

Unsubsidized Stafford Loan: Unsubsidized Stafford loans are for students who do not have financial need. With an unsubsidized Stafford Loan, you are responsible for paying the interest during all periods, starting from the date the loan is first disbursed.*

PLUS Loans (Direct or FFEL) are loans parents can obtain to help pay the cost of education for their dependent undergraduate children. In addition, graduate and professional degree students may obtain PLUS Loans to help pay for their own education.

A biological or adoptive parent (and in some cases, a stepparent) who does not have an adverse credit history may receive a PLUS Loan to help pay for the educational costs of a dependent undergraduate student who is enrolled at least half-time in an eligible institution. The maximum PLUS Loan amount a parent can borrow is equal to the cost of attendance, as determined by the school, minus any other financial aid the student may be receiving.

If you are a graduate or professional student, you are eligible for a PLUS Loan if you do not have an adverse credit history and are enrolled at least half-time at an eligible institution. The maximum PLUS Loan amount you can borrow is equal to the cost of attendance, as determined by the school, minus any other financial aid you may be receiving, including any Stafford Loans you receive for the same period of enrollment.

PLUS Loans are unsubsidized; the borrower is responsible for interest during the life of the loan. There is no grace period* on PLUS Loans.

Consolidation Loans (Direct or FFEL) allow student or parent borrowers to combine multiple federal education loans into one loan with one monthly payment.

Stafford, PLUS and Consolidation Loans are made through one of two U.S. Department of Education programs— the Direct Loan Program or the FFEL Program.
William D. Ford Federal Direct Loan (Direct Loan) Program. Loans made through this program are referred to as Direct Loans. Eligible students and parents borrow directly from the U.S. Department of Education at participating schools. Direct Loans include Direct Subsidized Loans and Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans. You repay these loans directly to the federal government.	Federal Family Education Loan (FFEL) Program. Loans made through this program are referred to as FFEL Loans. Banks or private lenders provide funds that are backed by the federal government. FFEL Loans include subsidized and unsubsidized FFEL Stafford Loans, FFEL PLUS Loans and FFEL Consolidation Loans. You repay these loans to the bank or private lender that made you the loan.

Stafford, PLUS and Consolidation Loans are made through
one of two U.S. Department of Education programs—
the Direct Loan Program or the FFEL Program.

William D. Ford Federal Direct Loan (Direct Loan) Program. Loans made through this program are referred to as Direct Loans. Eligible students and parents borrow directly from the U.S. Department of Education at participating schools. Direct Loans include Direct Subsidized Loans and Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans. You repay these loans directly to the federal government.

Federal Family Education Loan (FFEL) Program. Loans made through this program are referred to as FFEL Loans. Banks or private lenders provide funds that are backed by the federal government. FFEL Loans include subsidized and unsubsidized FFEL Stafford Loans, FFEL PLUS Loans and FFEL Consolidation Loans. You repay these loans to the bank or private lender that made you the loan.

Note: Documents for federal student loans will state somewhere on the form that it is a federal student loan. Some private student loan lenders have forms that look similar to the federal forms and might confuse some students.