Federal Student Loans
Federal Student Loans - Overview
Federal student loans help you have money for college on simple terms and conditions. These loans are funded by the government and offered on the basis of need. As college education is no more as affordable as it was in the past the government and other private financial institutes have introduced various financial aid programs to help you pursue an education with ease. Federal student loans allow you to pay for your tuition and related expenses in a convenient manner. Compared to private student loans, the rate of interest of these student loans is very low.
Type of Federal Student Loans
Some of the student loans offered by the federal government include:
- Federal Stafford Loans: This loan is most widely available to students. It has a fixed rate of interest and flexible repayment options that enable you to payback the borrowed amount with ease. To avail this type of aid you need to demonstrate financial need. These loans can be subsidized or unsubsidized. In a Subsidized Stafford loan, the government pays that interest on your behalf while in case of unsubsidized loans you have to pay it yourself.
- Federal Perkins Loans: These federal student loans also have fixed rate of interest. You can avail this financial aid if you demonstrate extreme financial need. These loans can also be subsidized on unsubsidized.
- Parent Plus loans: These loans are meant for the parents of the students who want to finance the education of their children. They are not based on financial need.
Applying for Federal Student Loans
To apply for these financial aid programs you need to file the Free Application for Federal Student Aid (fafsa). It helps the Education Department to determine your need. Other than filing the fafsa, you must also be a U.S citizen and enrolled in a program at half time at least to avail these funds.
Benefits of Federal Student Loans
Federal student loans help you have money for college on low interest rate. The simple eligibility requirements enable you to avail these financial aid options without much difficulty. Also, the flexible repayment options make these financial aid programs a great way to manage your educational expenses without worrying about it.