Did you know that government loans can be used to help you earn a college degree at home? Do the differences between Stafford Loans, Plus Loans, and Perkins Loans have you stewing? Are you in a quandary about which to choose for your education? Use this resource guide to educate yourself and find out more about how you can pay for your online degree education with the Federal Loan Program.

Stafford Loans are one type of student loan guaranteed and offered by the United States government. They are available both to undergraduate and undergraduate students. Students who are interested in earning a college degree online are eligible for a Stafford Loan if the college or university they are attending participates in the loan program.

Two types of Stafford Loans are offered by accredited traditional and distance degree learning institutions. The Federal Direct Loan Program awards money to students who have financial need and are financed by the federal government. In comparison, the Federal Family Education Loan (FFEL) is financed through a lending institution such as a bank or credit union.

Most colleges offer either Direct Loan or FFEL packages to eligible students. They must be regionally accredited, however, to be able to offer financial aid packages including federal government loans to their students. (For more information about regional accreditation, browse the resource or articles links.)

Stafford Loans may be subsidized or unsubsidized. Students who receive subsidized loans have demonstrated a financial need for the loan, do not accrue interest while they are enrolled at least half-time in an accredited degree program. Furthermore, they are not required to make payments on the loan principal until after they have completed their college degree programs or are no longer attending at least half-time.

In comparison, students who receive unsubsidized loans have not been able to prove a financial need for the loan amount. They are required to pay interest on the loan while attending school. However, they do not have to make payments on the principal until they have stopped attending college.

Perkins Loans are very similar to Stafford Loans. Students are required to pay a low interest rate (currently five percent). Both undergraduate and graduate degree students may apply for a Perkins Loan.

A third type of federal loan is also available to the parents of a student enrolled in a college degree program. Families do not have to demonstrate financial need to be eligible for PLUS loans. These loans, however, are unsubsidized, and interest accrues during the time the student is enrolled and attending a college degree program at least half-time.

Master's degree students, as well as students enrolled in professional degree programs such as a medical degree or juris doctorate (J.D.) program may also apply for Perkins Loans. Furthermore, they may defer the interest and principal payment of these loans while they are completing their graduate degree program.

Federal student loans often offer an extra cushion of financial assistance to students who want to earn a college degree at home. For more information about these loan programs, visit the Free Application for Federal Student Aid (FAFSA) site. Alternatively, you can learn more about these loans at Scholarships.com.

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