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There are a variety of loan options available to you when you’re ready to attend college. There are private loans and then there are loans guaranteed by the federal government. Regardless of your income or that of your parents, you should apply for financial aid and also federal guaranteed student loans.

Depending on your financial situation, you may be offered a federal subsidized loan. Subsidized loans offer a significant advantage over unsubsidized student loans, but many students find they need to take advantage of both if they qualify.

What’s the difference between the two? A federal subsidized loan is based on financial need, while an unsubsidized loan is not. So even if you don’t qualify for a subsidized loan, you still have the option of borrowing within annual and lifetime limits.

If you take out a subsidized loan, the government subsidizes the interest on the loan until repayment begins. With an unsubsidized loan, interest is charged from dispersal until full payment of the loan.

Many students and their parents are concerned about any type of student loan. Fortunately, fixed student loans and interest caps at low rates for even variable rate loans generally make the debt quite manageable. A student loan payment calculator can help you determine what your payments are likely to be over the life of your loans.

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