When Investing in a Brighter Future Requires Borrowing Funds
Student Loans Defined
Similar to the type of loan you might take out to buy a home, a student loan is money you
borrow and must pay back with interest. There are two types of student loans: federal student loans and private student loans.
Federal Loans for Students
These loans are offered by the federal government. Their conditions and terms are legally set. Benefits include fixed interest rates and repayment plans that start after graduation and can be based on income.
Private Loans for Students
State-based or state-affiliated organizations, banks and credit unions offer private student loans. The lender sets the conditions and terms. Compared to federal student loans, private student loans are typically more expensive.i
Learn more about the differences between federal student loans and private student loans in this chart.
Types of Student Loans
Type of Student Loan | Federal Direct Subsidized | Federal Direct Unsubsidized | Federal Direct Parent Plus | Federal Direct Consolidation | Private |
---|---|---|---|---|---|
Who Can Apply | Students with Financial Need | Students without Financial Need | Parents of Dependent Students | Students | Students |
Amounts | $3,500 to $5,500 per yearii | $2,000 to $12,500 per yearii | Training Costs Not Covered by Financial Aidiii | Total of All Federal Student Loans Combinediv | Varies |
Fees | 1.062%* | 1.062%* | 4.248%*v | No Application Feeiv | Varies |
Interest | Fixed Rate 5.05%*ii |
Fixed Rate 5.05%*ii |
Fixed Rate 7.6%*ii |
Fixed Rate Weighted Average of Rates on Consolidated Loansii | Varies |
Repayment Schedule | Starts after Graduation, Leaving School or Changing to Half-Time Enrollmenti | Starts after Graduation, Leaving School or Changing to Half-Time Enrollmenti | Starts after Graduation, Leaving School or Changing to Half-Time Enrollmenti | Starts after Graduation, Leaving School or Changing to Half-Time Enrollmenti | Variesi |
*Fee for Direct Subsidized Loans and Direct Unsubsidized Loans with a first disbursement date on or after October 1, 2018 and before October 1, 2019.6 ******
*Fee for Direct PLUS Loans with a first disbursement date on or after October 1, 2018 and before October 1, 2019.5 *****
*Interest rate for Direct Subsidized Loans, Direct Unsubsidized Loans and Direct PLUS loans first disbursed on or after July 1, 2018 and before July 1, 2019.
Student Loan Application Process
Complete the Free Application for Federal Student Aid (FAFSA) form. Federal student loans may be included in the financial aid offer RSI sends you. Our Financial Aid Advisors will educate you on how to accept part or all of the loan.iii
Visit our How to Apply for Financial Aid page to learn more about applying for FAFSA, or call us for additional details on the process of getting federal or private student loans.
Call us at (888)-671-5803..
Student Loan Help
Student Loan Resources
- Avoiding Student Loan Scams: Click here.
- Estimating Your Financial Aid: Click here.
- Choosing a Repayment Plan: Click here.
- Handling Disputes about Your Federal Student Aid: Click here.
Student Loan Assistance Group

We understand that taking out a student loan is a big responsibility. When managed properly, the rewards of a new skill set and career could be well worth the risks that can come with borrowing money for school. And we’re here to make sure everything goes as smoothly as possible with your student loans.
We take student loan management so seriously, we’ve even created an internal prevention team to make sure students receive the support they need to pay their student loans on time, or defer them if necessary.
RSI’s Student Loan Assistance Group is here to help you after you take out a student loan. Borrowing money for school can be a scary and complicated process, but you don’t have to do it alone.
Additional Sources
i https://studentaid.gov/sa/types/loans/federal-vs-private
iihttps://studentaid.gov/sa/types/loans/interest-rates
iiihttps://studentaid.gov/sa/types/loans
ivhttps://studentaid.gov/sa/repay-loans/consolidation
vhttps://studentaid.gov/understand-aid/types/loans/plus/parent
vihttps://studentaid.gov/sa/types/loans/subsidized-unsubsidized