Types of loans include Stafford loans (subsidized or unsubsidized) and PLUS loans (usually taken out by parents of undergraduates or by graduate students themselves). Known as Title IV loans, they are guaranteed by the federal government. Alternate loans to help finance education costs come from private lenders, which are neither subsidized nor guaranteed by the federal government.

In a press release from the Office of the Attorney General, Andrew M. Cuomo advised college-bound students to protect themselves from deceptive student-loan practices. Understanding these practices will help them select the best lender for their situation, especially if the college or university is steering them toward a particular lender.

In his ongoing investigation into the student loan industry, Cuomo requested information from more than 60 public and private colleges and universities nationwide regarding lending companies that are included on a school’s “preferred lender” list.