Types of Student Loans Available for Borrowers

Educational fees continue to increase and currently, no chances of lowering it down are seen. One of the ways to still pursue higher education is to avail of a loan. Over 50% of people who go to college avail different types of loans depending on their situation. But what is the best student loan that you can get? 

Types of Student Loans

Federal Student Loan

Undergraduate and graduate students are eligible for federal loans. All they have to do is fill out the Free Application for Federal Student Aid (FAFSA). The FAFS is a need-based loan offered by the government which will also be used in financial aid packages.

  • Direct Subsidized Loans

Direct subsidized loans are offered to cover educational fees in any college institution or training school. The good thing about this is the US Department of Education pays for the interest rate while the student is in school or doing part-time. A grace period of six months is also given after you leave school. 

  • Direct Unsubsidized Loans

This type of loan is for undergraduate, graduate, and professional students. But unlike direct subsidized loans, this is not based on the need of the student. Rather, the cost of the school you are attending to. Since it is unsubsidized, you are responsible for the interest rates. 

  • Perkins Loans

Perkin loans were offered to students with high financial needs but were halted in 2017. Students can borrow money from this loan and repay it back to their school. 

  • PLUS Loans

PLUS loans are for graduate students and undergraduate students dependent on their parents. This type of loan requires a credit card check and has the highest interest rate of all.

Private Student Loan

Besides federal loans which are generated from the government, there are private loans also in the form of banks and other financial institutions. To identify the best private student loans, you must check the terms, interest rates, and the eligibility for undergraduates. The qualifications often include credit score and credit history. 

  • Bar Exam Loans

Bar exam loans cover the basic needs of law students like preparatory classes, day-to-day expenses, and exam fees.

  • International Student Loans

Federal students are not offered for non-US citizens. Instead, they can apply for international student loans. But this requires a US citizen co-signer.

  • Medical School Loans

Similar to bar exam loans, students in medical school can avail of Medical School Loans with lower interest rates.

  • Students Loans for Bad Credit

As mentioned, you need to have a good credit score to quickly avail of private loans. But if your score is insufficient, you may opt for Student Loans for Bad Credit.

  • Student Loans Without a Cosigner

Undergraduates usually need a co-signer in banks and other financial institutions. But if you cannot find any, the Student Loans Without a Cosigner can decide whether or not to grant you a loan.

  • State Loans

Check your state if they offer state loans. State loans are similar to private loans.

  • Credit Union Loans

Credit unions offer loans especially if you have a good standing and credentials.


It is essential to choose the best student loans as per your situation. This is a major financing decision as you may live longer paying for these loans (even if you are working already). Assess your condition and your financial capacity.