College Loans are not all the same

Student loans can be very complicated to understand. There are two major groups of student loans, federal and private. Private loans are typically called direct PLUS (Parent Loan for Undergraduate Students) loans. The federal student loans are further broken into two groups, subsidized and unsubsidized. Subsidized student loans do not start charging interest until after the student graduates and that can save quite a bit of money. All other loans start accruing interest the day you take the money, even though you do not have to start repaying it until you graduate. For more information check out our video or our book Finacaillially Independent Teens