A quick education on federal loans.
- Student Loans: Direct loans are made by the federal government and are low-interest loans made to students for the cost of education, minus any financial aid. There are two types of Direct loans.
- Direct Subsidized Loan - the federal government pays the loan's interest while the student is in school at least half-time. These loans are based on family need.
- Direct Unsubsidized Loans - made to students no matter what their family's need or income level; however, the interest is paid by the student and not the federal government.
- Direct PLUS Loans: Direct PLUS Loans are made by the federal government and allow parents and graduate students to borrow money up to the cost of education, minus any financial aid. Financial need is not a requirement, but credit guidelines apply in determining eligibility.
For more information about Direct PLUS Loans, visit the U.S. Department of Education Web site.
If federal loans, scholarships and grants don't cover all of your college expenses, SunTrust offers private loans.