School Loans

There are several different types of School Loans available to students.  There are subsidized, unsubsidized, grants, private and even parent loans for the students.  The Federal Stafford loan is to be repaid by the student and it is in his or her name.  It is based on need and does not require a credit check.  This loan does not have to be repaid until after the student graduates, leaves school or stops attending on at least on a part-time basis.  Some colleges or universities will offer Stafford School Loans directly through the federal government. These are called the Direct Stafford School Loans. If a college or university offers Direct School Loans then they are referred to as Direct Lending Schools. Other colleges and universities offer Stafford loans through banks or other private lenders. Students and parents are responsible for finding their owner lender for these School Loans.
 
Federal PLUS loans, on the other hand, must be repaid by the parent, since the loans will be in the parent's name.  These School Loans do require a credit check but the credit criteria to obtain one of these School Loans is not as strict as they are for other types loans, like personal loans. Repayments of PLUS School Loans begin after the loan is fully disbursed. 

If students and parents find that federal School Loans are not enough to cover educational costs, or making payments while in school is too much of a burden then there are private School Loans that are made by banks and other lenders to students. These School Loans typically must be used for education expenses, tuition and books, not living expenses, but offer a convenience and flexibility that are appealing to students.  Good credit is a must in order to obtain these types of School Loans and most students will need a co-signer in order to be considered to receive a private loan. Also, these types of School Loans may have higher interest rates that means higher payments for the student typically.