Unlike scholarships, these are always need-based and they come from schools themselves. Most of the aid given at public schools is federal, while many private schools have more institutional funds available. Because of this, although the tuition at most private schools is greater than it is at public schools, after financial aid is factored in, the cost of attending many private schools isn't as great as many people would expect. Loans are a kind of aid which must be repaid. The interest rates differ depending on the type of loan, but most federal loan rates don't exceed 8 percent.
Loans are available to both students and their parents.
Some loans are subsidized, which means the federal government will pay the interest while the student is in college, and some are not. Many colleges have different application deadlines and scholarship deadlines. Students should check with individual schools to see if this applies.