organization. State Grants, public funds received from state agencies that are completely separate from those listed in the federal sector. These grants vary by state and are awarded based on financial need. Education loans An education loan is a loan taken out by the student (or parent) in order to pay for educational expenses. Unlike scholarships and grants, this money must be repaid with interest. Educational loan options include federal student loans, federal parent loans, private loans, and consolidation loans. Federal student loan programs Federal student loans are loans directly to the student; the student is responsible for repayment of the loan. These loans typically have low interest rates and do not require a credit check or any other sort of collateral. Student loans provide a wide variety of deferment plans, as well as extended repayment terms, making it easier for students to select payment methods that reflect their financial situation. There are federal loan programs that consider financial need. Direct subsidized loans Direct subsidized loans are the most sought, as they have few requirements other than enrollment and demonstration of financial need. However, the amount you may borrow is determined by your school and may not exceed your financial need, which is based on the EFC from your FAFSA. You are not required to begin repaying these loans for as long as you are in school at least as a part-time student. They also offer a six-month grace period, meaning you do not begin repaying them until six months after you leave school. These loans also offer a deferment period in some cases. Direct unsubsidized loans Direct Unsubsidized Loans are available to all undergraduate and graduate students, with no requirement to demonstrate financial need. Your school will determine how much you are allowed to borrow based on your cost of attendance and adjust for any other financial aid you are receiving. However, you are responsible for paying the interest on these loans even during school. If you choose not to pay interest while enrolled, your interest will accrue and be added to the principal amount of your loan. Parent loans Federal parent loans are a federally funded loan option if the student is dependent on his or her parents. Parent loans allow parents to take out student loans, the repayment of which will be their responsibility. The parents use these loans to pay for educational expenses on behalf of