There are basically two types of loans: federal loans and alternative (or private) loans.
Federal student loans are the largest source of education loans and usually have more favorable terms than alternative loans. It is best to get all the federal loans you can before looking into alternative loans.
Federal Stafford Loan
Federal Stafford loans are the most common source of college loan funds with a fixed interest rate of 6.8%.
There are two types of Stafford loans:
- Subsidized Stafford loans are need-based. If your financial need is great enough and you qualify for this special type of Stafford loan the government will pay the interest on your loan while you are in school at least half-time.
- Unsubsidized Stafford loans are not need-based. You are responsible for all of the interest, even while you are in school.
Federal Perkins Loan
A federal Perkins loan has a fixed interest rate of 5% and is for students with exceptional financial need.
Federal Parent PLUS Loan
A federal Parent PLUS loan allows parents to borrow money up to the cost of attendance at a fixed interest rate of 7.9%. Parent PLUS loans are designed to cover the remaining balance after other financial aid has been applied.
Alternative loans provide additional funding after you have maximized your federal loan eligibility and are best used as a last resort. You can get them from private financial institutions.
The King loan is a special loan with special benefits just for young men who come to Florida College for the purpose of preparing themselves to preach the good news of Jesus Christ. It has a fixed interest rate of 4% and may be forgiven if you preach full-time for three years after graduation.