There are many different types of education loans. Learn about federal and private education loans so that you can find the right loan to help pay for your education.
Federal education loans
Federal programs are the single largest source of education loans. The two primary programs
are the Federal Family Education Loan Program (FFELP)
and the William D. Ford Federal Direct Loan Program
(FDLP). The loans available through these programs start with the same terms; however,
in the FFELP, your bank, credit union, or school is the lender, and in the FDLP, the U.S.
Department of Education is the lender.
Listed below are some of the more widely used federal education loans.
- Federal Perkins Loans.
- Federal Stafford Loans.
- Federal Parent Loans for Undergraduate Students (PLUS).
Private education loans
Private education loans are also available
from a variety of sources to provide supplemental funding when other financial aid does
not cover costs. These loans are not sponsored by government agencies, and are offered
by banks or other financial institutions. Sallie Mae's private loan program for undergraduate
and graduate studies is the Signature Education Loan® Program, a comprehensive
source of funding whereby federal and private loans are offered as a package from a single,
convenient source.
Other private supplemental loans are available and in some cases are tailored to specific courses of study. Some examples include:
