A loan is money you borrow to help meet the costs of your education. You will need to pay it back.

There are several types of loan programs available to you: Federal Perkins Loans, Subsidized Federal Stafford Loans, Subsidized Federal Direct Loans, Unsubsidized Federal Stafford Loans, Unsubsidized Federal Direct Loans among others.

A Federal Perkins Loan is a low interest loan for both undergraduate and graduate students with exceptional financial need. Federal Perkins Loans are made through a school's financial aid office. Your school is your lender, and the loan is made with government funds.

Depending on when you apply, your financial need, and the funding level at the school, you can borrow up to $3,000 for each year of undergraduate study. The total amount you can borrow as an undergraduate is $15,000.

If you are attending school at least half time, you have nine months after you graduate, leave school, or drop below half-time status before you must begin paying the money back. Your monthly payment amount will depend on the size of your debt and the length of your repayment period.

Direct Stafford Loans are available through the William D. Ford Federal Direct Loan Program and Federal Family Education Loan (FFEL) Stafford Loans are available through the FFEL Program.

The terms and conditions of a Direct Stafford or a FFEL Stafford are similar. The major differences between the two are the source of the loan funds, some aspects of the application process and certain repayment aspects.

If your school participates in Direct Loans, the FAFSA serves as your Stafford Loan application. If your college participates in the FFEL Program, the school may give you a separate Stafford Loan application to fill out.

A subsidized loan is awarded on the basis of financial need. You will not be charged any interest before you begin repayment or during authorized periods of deferment. The federal government 'subsidizes' the interest during these periods.

An unsubsidized loan is not awarded on the basis of need. You'll be charged interest from the time the loan is disbursed until it is paid in full. An unsubsidized loan is not awarded on the basis of need, therefore, your EFC is not taken into account. If you do not receive enough need-based aid to meet your cost of attendance, you can pay for some of your remaining costs with an unsubsidized loan.

For both the Direct Loan and FFEL programs, you'll be paid through your school in at least two installments. Your loan money must first be applied to pay for tuition and fees, room and board, and other school charges. If other loan money remains you'll receive the funds by check or in cash.

If you are a dependent undergraduate student you can borrow up to:

• $2,625 if you are a first-year student enrolled in a program of study that is at least a full academic year.
• $3,500 if you've completed your first year of study and the remainder of your program is at least a full academic year.
• $5,500 a year if you've completed two years of study and the remainder of your program is at least a full academic year.

• $6,625 if you are a first-year student enrolled in a program of study that is at least a full academic year (only $2,625 of this amount may be in subsidized loans).
• $7,500 if you've completed your first year of study and the remainder of your program is at least a full academic year (only $3,500 of this amount may be in subsidized loans).
• $10,500 a year if you've completed two years of study and the remainder of your program is at least a full academic year (only $5,500 of this amount may be in subsidized loans).

The interest rate is variable. Fees are charged and deducted proportionately from each disbursement of your loan.

To be eligible to receive a PLUS Loan, your parents generally will be required to pass a credit check. A parent cannot be turned down for having no credit history - only for having an adverse one.

If your parents do not pass the credit check, they might still be able to receive a loan if someone, such as a relative or friend who is able to pass the credit check, agrees to endorse the loan. An endorser promises to repay the loan if your parents fail to do so.

Your parents might also qualify for a loan even if they do not pass the credit check as long as they can demonstrate that extenuating circumstances exist. You and your parents must also meet other general eligibility requirements for federal student financial aid.

The yearly limit on a PLUS Loan is equal to your cost of attendance minus any other financial aid you get. If your cost of attendance is $6,000, for example, and you receive $4,000 in other financial aid, your parents can borrow up to $2,000.

Either yourself or your parents will pay a fee of up to 4 percent, deducted proportionately from each disbursement of the loan. The interest rate is variable.

There is no grace period for these loans. Generally, the first payment is due within 60 days after the final loan disbursement for the year.

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