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Sandra Dunleavy, head of Bank of America's student loan business, said in a statement that the bank "remains committed to helping parents and students finance a college education through the federal student loan program," including Stafford and Plus loans.But bank executives declined to discuss the move further.It offers attractive options to students to further their education and achieve their goals.

Students with demonstrated financial need are often awarded Direct Subsidized Loans which do not change interest as long as you are in school or in a deferment period.

Direct Unsubsidized Loans do not require borrowers to have demonstrated financial need and start to accumulate interest as soon as they are awarded.

Sometimes a federal loan isn’t enough to cover the entire financial need and borrowers will fill the gap through a private student loan.

From the student’s perspective, this means that the loan is assured and is either subsidized or has a fixed rate.

It is the Consolidation loan which usually charges the fixed interest rate as decided by the government.