<p>These loans are similar in several ways: </p>
<p>All of these loans are taken out by the student, not the parents. Because the loans are guaranteed by the federal government, they are offered at a lower interest rate than the borrower would otherwise be able to get for a private loan. No payments are expected on the loans while the student is enrolled as a full- or half-time student.</p>
<p>The main differences between these loan programs include the following:</p>
<p>Perkins loans are need-based loans that are only available to low-income students. This type of loan is subsidized by the government so that interest does not begin to accrue until the borrower begins to repay the loan approximately 9 months after graduation (or otherwise leaves full-time status.)</p>
<p>With subsidized loans, the interest is paid by the federal government while the student is in school, during the grace period, and during authorized deferment. </p>
<p>Unsubsidized loans, on the other hand, do accrue interest while the student is in school; the borrower can either pay the interest while they’re in school or have it added to the principal of the loan.</p>
<p>Perkins are the most favorable, followed by subsidized federal loans, and finally unsubsidized loans. </p>
<p>You could certainly choose to take, say, only the Perkins loan and the subsidized federal loan, and refuse the unsubsidized loan. I don’t know whether you would be able to lower the amount you borrow, though. That would be a good question to ask the financial aid office.</p>