There are several distinct kinds of student loans, including the following:
Federal student loans
Interest rates for federal student loans are established by Congress, and these loans are made available by the United States Department of Education. These loans also provide benefits and protections that aren’t offered by private student loans, such as access to federal deferment and forbearance choices, income-driven repayment schemes, and student debt forgiveness programs. Private student loans don’t offer any of these possibilities.
Undergraduate student loans
Loans for undergraduate study can come from either the federal government or from private lenders and can be used to cover the costs of attending an undergraduate institution.
Parent PLUS Loans
Parents who are interested in providing financial assistance to their children in the form of education costs can apply for Parent PLUS Loans. A credit check is required for PLUS loans, which sets them apart from other federal student loans. If you have a poor credit history, such as a default, a delinquent account, or a repossession, it is possible that you will not be approved for a PLUS loan. It is important to keep in mind that some private lenders do, in fact, offer student loans to parents; however, these loans do not come with the federal protections that are offered by PLUS Loans.
Graduate student loans
You may qualify for assistance with the cost of graduate education through the utilization of graduate student loans. There are two forms of federal student loans that can be utilized for graduate study. These loans are known as Direct Unsubsidized Loans and Grad PLUS Loans. There are also a number of private lending companies that provide loans to graduate students.
MBA student loans
A master’s degree in business administration can be financed with the assistance of student loans. You might be able to pay for these expenses using a standard loan for graduate students, but there are also private lenders who offer specialist MBA loans if you want to explore other options.
Law school student loans
Student loans from law schools are one option for financing a legal education. For this purpose, you have the option of borrowing money through conventional graduate student loans or from specialist law school loans offered by select private lenders.
Loans for students attending medical schools
Student loans for medical school can assist you in covering costs associated with attending medical school. You may also be able to defer payments on some medical school loans until after you have completed your residency.