There are different types of undergraduate student loans to help pay for college
The single best loan an undergraduate can borrow is the federal Direct Loan, and it’s not just for students with financial need. Any student, regardless of need, can borrow up to the maximum: $5,500 as a freshman, $6,500 as a sophomore, $7,500 as a junior, and $7,500 as a senior.
Most students receiving financial aid will see two federal Direct Loans in their award letter. One will be a Direct Subsidized Loan, which will total $3,500 for a freshman. The federal government pays the interest while the student is in college. The other is a Direct Unsubsidized Loan, which for a freshman will be $2,000. Interest accrues from the date of disbursal on unsubsidized loans. Both loans have the same low fee and low interest rate….