What is the most common federal student loan?

Asked by: Conner Stiedemann Jr.  |  Last update: June 18, 2025
Score: 4.6/5 (40 votes)

The most common types of federal student loans are Direct Loans, Parent PLUS Loans, Graduate PLUS Loans, Stafford Loans, Consolidation Loans, Perkins Loans, and Federal Family Education Loans (FFEL).

WHat is the most common type of federal student loan?

Federal student loans are the most common type of student loan. There are four main types of federal student loans: subsidized, unsubsidized, parent loans, and consolidation loans. There are also private student loans, which generally have higher interest rates and stricter requirements.

WHat is type 1 and type 2 student loan?

Plan 2 refers to a student loan taken out from September 2012 onwards, in England or Wales. Older loans (from England or Wales) and loans taken out in Northern Ireland, are called plan 1 loans.

How much is a $30,000 student loan per month?

A $30,000 private student loan can cost approximately $159.51 per month to $737.38 per month, depending on your interest rate and the term you choose. But, you may be able to cut your cost by comparing your options, improving your credit score or getting a cosigner.

WHat is the most common student loan debt?

Overall, the median borrower with outstanding student debt owed between $20,000 and $24,999 in 2023.
  • Among borrowers who attended some college but don't have a bachelor's degree, the median owed was between $10,000 and $14,999 in 2023.
  • The typical bachelor's degree holder who borrowed owed between $20,000 and $24,999.

What Everyone's Getting Wrong About Student Loans

23 related questions found

What specific loan type is most common among borrowers?

Most borrowers choose fixed-rate mortgages. Your monthly payments are more likely to be stable with a fixed-rate loan, so you might prefer this option if you value certainty about your loan costs over the long term. With a fixed-rate loan, your interest rate and monthly principal and interest payment stay the same.

How much would a $70000 student loan be monthly?

The monthly payment on a $70,000 student loan ranges from $742 to $6,285, depending on the APR and how long the loan lasts. For example, if you take out a $70,000 student loan and pay it back in 10 years at an APR of 5%, your monthly payment will be $742.

How much is the average student loan for 4 years?

Student Debt in Perspective

Among those who borrow, the average debt at graduation is $27,100 — or $6,775 for each year of a four-year degree at a public university. Among all public university graduates, including those who didn't borrow, the average debt at graduation is $16,300.

What is a normal monthly student loan payment?

Data Summary. The average federal student loan payment is about $302 for bachelor's and $208 for associate degree-completers. The average monthly repayment for master's degree-holders is about $688.

What is a Type 4 student loan?

If you're a Scottish student who started an undergraduate or postgraduate course anywhere in the UK on or after 1 September 1998, you'll be on repayment Plan 4. This means you'll pay 9% of the income you earn over the threshold to the Student Loan Company (SLC).

What is the best student loan repayment plan?

Best repayment option: standard repayment. On the standard student loan repayment plan, you make equal monthly payments for 10 years. If you can afford the standard plan, you'll pay less in interest and pay off your loans faster than you would on other federal repayment plans.

What is the main difference between Type 1 and Type 2?

In diabetes type 1, the pancreas does not make insulin, because the body's immune system attacks the islet cells in the pancreas that make insulin. In diabetes type 2, the pancreas makes less insulin than used to, and your body becomes resistant to insulin.

Which federal loan type is best?

A subsidized loan is your best option. With these loans, the federal government pays the interest charges for you while you're in college.

Which student loan type has the most benefits?

Federal student loans are made by the government, with terms and conditions that are set by law, and include many benefits (such as fixed interest rates and income-driven repayment plans) not typically offered with private loans.

WHat is the maximum amount of student loans you can get?

$57,500 for undergraduates-No more than $23,000 of this amount may be in subsidized loans. $138,500 for graduate or professional students-No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.

Is $40,000 in student loans a lot?

Right now, the average student loan debt in the U.S. is nearly $40,000 but many students borrow much more. Depending on your field of study and career prospects, borrowing upwards of $100,000 to fund your higher education could either be a smart investment or a big mistake.

How much is a 200 000 student loan monthly?

Let's say you have $200,000 in student loans at 6% interest on a 10-year repayment term. Your monthly payments would be $2,220. If you can manage an additional $200 a month, you could save a total of $7,796 while trimming a year off your repayment plan.

What is 6% interest on a $30,000 loan?

For example, the interest on a $30,000, 36-month loan at 6% is $2,856. The same loan ($30,000 at 6%) paid back over 72 months would cost $5,797 in interest. Even small changes in your rate can impact how much total interest amount you pay overall.

What is the most common federal student loan type?

The most common types of federal student loans are Direct Loans, Parent PLUS Loans, Graduate PLUS Loans, Stafford Loans, Consolidation Loans, Perkins Loans, and Federal Family Education Loans (FFEL).

Is it better to take out student loans or pay cash?

Many financial “experts” say you should always pay with cash when possible. They apply this rule to all debts, including credit cards, auto loans, home loans, and yes, student loans.

Which loan is easy to borrow?

Eazzy Loan is an easy loan to get, No guarantors, No forms, no branch visits. You receive the loan instantly on your phone, saving you valuable time. It offers a flexible repayment period of up to 24 months.