There are a few different types of student loans. To pursue forgiveness and income-driven repayment plan options, borrowers need to have Direct student loans.
Here are the different types of loans:
| Direct Loans | PLUS Loans | Perkins Loans | FFEL Loans | Private Loans |
|
Loan program after 2010 |
GRAD PLUS: Loans you take out during graduate/professional programs Parent PLUS: Loans in your name taken out on behalf of your child |
Loan program for low income undergrad and graduate students, program ended 2017 | Loan program before 2010 | Nonfederal loans, made by a lender such as a bank, credit union, state agency, or a school |
| Includes Direct Consolidation Loans |
|
Loans will be held by the school you attended | Includes FFEL Consolidation Loans | Direct loans that have been refinanced into a Private loan cannot be reverted back into Direct loans |
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Eligible for programs like Income Driven Repayment Plans and Public Service Loan Forgiveness |
GRAD PLUS loans are eligible for federal programs Parent PLUS loans must be consolidated to be eligible for IDR (specifically the ICR plan) and PSLF |
Must be consolidated to be eligible for IDR and PSLF Eligible for Perkins Loan Cancellation |
Only eligible for IBR (IDR), must be consolidated a Direct Consolidation loan to be eligible for other IDR programs and PSLF | Not eligible for any federal repayment or forgiveness programs |
| Example: Direct Subsidized, Direct Unsubsidized, Direct Consolidation | Example: Direct Parent PLUS, FFEL Parent PLUS, GRAD PLUS | Example: Federal Perkins Loan | Example: FFEL Subsidized, FFEL Unsubsidized, FFEL Consolidated | Example: Wells Fargo, SoFi, Discover, local credit union |
If you have FFEL, Parent PLUS, or Perkins Loans and intend to pursue PSLF, you must consolidate your loans into a Direct Consolidation loan to convert them into the eligible loan type.
Private loans are not eligible for any federal forgiveness or repayment plans.