Federal Family Education Loan Program (FFELP) (as defined bby DOE and/or the Common Manual): Student Loan programs authorized under the Higher Education Act of 1965 that includes the Federal Stafford, Federal PLUS, and Federal Consolidation Loan Programs. These loan programs are funded by participating private lenders (credit unions and banks), guaranteed by a Guaranty Agency in your state, and reinsured by the federal government.

Stafford Loan (as defined by DOE and/or the Common Manual): The largest source of low-interest loans administered by the Department of Education. Stafford Loans are either subsidized or unsubsidized. You can receive a subsidized loan and an unsubsidized loan for the same enrollment period. Generally, if you are a regular student enrolled in an eligible program at least half time you may be eligible for a Stafford Loan. Contact your school’s Financial Aid Office to determine your eligibility for these loans.

PLUS Loans (as defined by DOE and/or the Common Manual): A loan the enables parents who do not have an adverse credit history to borrow to pay the education expenses of each child who is a dependent undergraduate student enrolled at least half time.

Subsidized (As defined by DOE and/or the Common Manual): A loan that is awarded by your school’s Financial Aid Office that is based on financial need. These loans are eligible for interest benefits paid by the federal government. Because the federal government is “subsidizing” (paying) the interest, you will not be charged any interest before you begin repayment or during authorized periods of deferment.

Unsubsidized(As defined by DOE and/or the Common Manual): A non-need-based loan as determined by your school’s Financial Aid Office, where the borrower is responsible for paying the interest on the loan. You will be charged interest on the loan from the time the loan is disbursed until it is paid in full. This loan provides assistance to students who may not have “need’ according to the formula used by the Department of Education, but would benefit from having access to a low-interest federal student loan.

Consolidation Loans (as defined by DOE and/or the Common Manual): A loan designed to help student and parent borrowers simplify loan repayment by allowing the borrower to combine several types of federal student loans with various repayment schedules into one loan. If you have more than one loan, a Consolidation Loan simplifies the repayment process because you make only one payment a month. Also, the interest rate on the Consolidation Loan is based on the average of the loans being consolidated and the rate might be lower than what you are currently paying on one or more of your loans.

Graduate PLUS Loans (as defined by DOE and/or the Common Manual): A loan that enables graduate and professional students who do not have adverse credit history to borrow additional money to cover 100% of the remaining educational costs.