Or, if you need extra money, shop for the best interest rates on home equity loans . A Guide for Parents and Their Children. Federal Loans Federal Stafford Loans are made to undergraduate and graduate students attending accredited schools at least half-time.
Payments usually begin six months after the student leaves school.
Those with financial need receive subsidized loans, meaning the government pays the interest while the student is in school. In a standard Stafford Loan, recipients are charged interest from the time the loan is issued. Federal PLUS Loans are made to parents with good credit, who may finance up to the full cost of educating each dependent attending an accredited school at least half-time. No demonstration of financial need is necessary. The loan characteristics are essentially the same.