In order to meet the cost of attending college, parents as well as students frequently take out loans. Loans are a type of financial aid that can either be obtained through a bank, school, or other aid program. The money you receive from a loan must be paid back, often with interest. Fortunately, many student loan programs offer very low interest rates and do not require any payments until after you finish college.

Some common sources of college loans include:

• Federal Perkins Loan: A federal government-funded loan offered to undergraduate as well as graduate students who demonstrate financial need. A Perkins Loan has only 5 percent interest, and does not have to be repaid until after you graduate from college. Additionally, your Perkins Loan balance can be fully or partially paid off for you if you decide to enter certain career fields, including nursing, law enforcement, and special education. Click here for a complete summary of terms and conditions for the Federal Perkins Loan.
  
  
• Federal Stafford Loan: A federal government-funded loan available to undergraduate as well as graduate students who either demonstrate financial need or would like to take out a loan to cover college costs. The Federal Stafford Loan does not require a credit check and has low interest rates. Check with the school(s) you are applying to and find out whether or not they accept Federal Stafford Loans, or click here for a list of eligible schools. Click here for more detailed information about the Federal Stafford Loan.
  
  
• Parent PLUS Loan: A non-need based loan available to parents of undergraduate students. For the PLUS Loan, parents must have good credit history and be approved by the loan program. Money from a PLUS Loan can be used for any educational expenses, including tuition, room and board, and supplies. Interest is low and may be tax-deductible. Click here to find out more about the Parent PLUS Loan.