One form of financial aid is student loans, which need to be paid back.  There’s a lot of confusion about what student loans, so here’s a brief description of the big three categories of student loans.

• Federal student loans made to students directly.  Students don’t have to pay back these loans until after graduation, but the amount of money borrowed can be pretty limited.
• Federal student loans for parents, like the PLUS loan.  These loans are taken out by parents in order to pay for their child’s education, and they can borrow much more than if it were a federal student loan.  However, interest rates are higher, and payments start immediately.
• Private student loans made to either parents or students.  These loans differ from the other 2 loans because either parents or students can borrow more money, and payments do not start until after graduation.  However, interest does accrue immediately.

For more information on financial aid, be sure to visit www.finaid.org