Georgia Student Finance Commission


Student Loans - Types of Loans

College Money Matters

Student Loans - Types of Loans

Student Loans - Types of LoansThe federal government has loans for students and their parents. Some loans will accrue interest, while others may not.

Parent loans will require a credit check, the student loan doesn’t. Students are limited to how much can be borrowed annually and cumulatively. Borrow smart and conservatively. 

Borrowing directly from the federal government has many advantages including that it is regulated by federal law, fixed interest rates, flexible repayment plans, and loan forgiveness programs.  Private lenders are quite different. Here is a chart that outlines the differences between a federal and private student loan.

The state of Georgia also has a student loan administered through GSFC. These loans include the low-interest Student Access Loan and state military cancelable loan programs.

You may not be able to choose the loan that is offered because of eligibility, but to some extent you are able to select the amount borrowed. Minimize your debt by only borrowing what you need. Students can select the amount of the loan needed. You are not required to accept the full amount offered.

For example, as a freshman, you are able to borrow $5,500 for your first year of college. However, you don’t have to borrow the full amount. Based on your spending plan, which includes all financial aid, you only need $1,000 per semester. Only accept $2,000 of the loan, which is the $1,000 needed for two semesters.