The Different Types of Student Loans
To find out about federal student loans, visit Federal Student Loans 101. This page gives an overview of topics like who can get federal student loans, the different types of student loans, loan interest rates, how to apply, and information about various loan servicers (including Nelnet).
To view an in-depth comparison chart of different federal student loans including information about loan amount limits, which loans are subsidized (meaning that the government pays the interest while the student is in school or deferment), and whether the loan requires a credit check, take a look at the Types of Federal Loans.
Your child will not need to pay back their loans while in school. However, during that time, they have the option of paying on their loan interest. This is beneficial in that it reduces the amount of interest that is added to the principal balance of unsubsidized student loans (this process is called capitalization).
Please Note: If your child borrows Federal Stafford Loans, they’ll have a six-month grace period after they graduate or drop below half-time status before they must begin paying their loans back. During this grace period, they should find out who their loan servicers are, choose a repayment plan that works for them, and possibly explore loan consolidation, which can give them one easy-to-remember payment per month.