<p>i've been offered these:</p>
<p>Federal Perkins Loan
Parent PLUS Loan
Stafford Subsidized Loan</p>
<p>however i probably only need to take out one, since i am only short about $2k short. so could someone summarize or tell me anything about these three types of loans?</p>
<p>which would be best for me to take?</p>
<p>Perkins is the best. It is subsidised (therefore fed gov pays the interest until 9 months after you graduate/drop to less than half time/quit school) and capital repayment does not start until then, has the lowest interest rate @5%, and does not have an origination fee (i.e. does not cost anything to get it - no up front fee). It is in the students name.</p>
<p>Stafford subsidised is next best. Also subsidised so again fed gov pays the interest until 6 months after graduation/dropping to less than half time/quitting at which time repayment also starts. Interest rate is higher - 6.8%. Has an origination fee - I think it is 3% (I may not have the exact % correct). So if you borrow $2000 you will pay an origination fee of @$60 so would only actually get $1940. Also in the students name.</p>
<p>Parent plus is the worst one - not subsidised so interest and capital repayment is due from day one. Interest is probably higher. I have not looked into it that deeply as our offers included only subsidised loans.</p>
<p>Your school should have detailed information on the loans you have been offered so verify the above information with them before accepting or declining any offers.</p>
<p>PLUS loan: taken in your parents' names. For 06-07, interest was 7.9%. They have a 2.5% origination fee (I believe). Repayment begins 60 days after final disbursement of the enrollment period. This is the only loan that is technically uncapped -- your parents can borrow up to the CoA less any financial aid you were offered.</p>
<p>Definitely your worst option amongst the three, however. I'd definitely go with the Perkins, then Stafford, THEN PLUS.</p>