Paying for college can be tough for families. Saving for college and applying for scholarships and grants can go a long way to foot the bill. Still, even with a healthy savings plan and plenty of financial aid, many families will need to take out student loans to cover the cost of college.

If this is the case for your family, it is important to know that you are not alone. Marketplace reports that about 70 percent of students take out some kind of student loan to pay for college. The overwhelming majority of these student loans are federal loans.

In fact, 92 percent of student loans are federal loans. There are many benefits to federal loans, but it can be difficult to understand the differences between all the kinds of loans. Here is what students need to know about subsidized versus unsubsidized loans and which is best for you when it comes payday loan Blue Ridge Georgia to paying for college.

Federal Loans Start With the FAFSA

The process for applying for federal student loans begins with the FAFSA. In addition to financial aid like grants and scholarships, the FAFSA is required for families to qualify for federal student loans. Even if you do not expect to qualify for need-based financial aid, you must still submit the FAFSA if you plan to apply for a federal loan. Lees verder →