It is more advantageous for a student to borrow because of the low interest rate, long term pay-out, and deferment of principal. Since federal loans are based on need and may not cover the full cost of education, parents may have to support the attending student. There are education loans for both the students and parents who have children attending school. Click here for more information on the above mentioned loans. Subsidized Stafford This loan type is for students who meet certain needs and family income tests.
Interest is subsidized while in school and during other periods.
This loan type is for students who meet certain needs but do not qualify for the subsidized program or have additional borrowing needs beyond the subsidized program. Interest must be paid by the borrower or capitalized while in school and during other periods. This loan type is for the benefit of students who do not meet the needs test but require additional funds above Stafford loan limits. Interest on PLUS loans is not subsidized. Only parents may borrow under this loan type.