Federal Student Loans
What Are Federal Student Loans
Federal student loans for college are student loans facilitated by the US Federal Government. Federal student loans are among the most popular and most sought after student loans for college. Most financial aid experts recommend that a federal student loan should be the first type of loan a college student applies for. Prior to July 1st of 2010, banks and financial institutions could provide federal student loans that were guaranteed against default by the US Department of Education through the federally-guaranteed student loan program. After July 1st of 2010 all federal student loans are provided through the Direct Loan Program, where the funding comes directly from the federal government.Applying for federal student loans is done by filing a FAFSA (Free Application for Federal Student Aid). Filing a FAFSA is free and only needs to be done once per academic year. Once you have filed your FAFSA, you will receive a SAR (Student Aid Report) which will outline the federal student loans you qualified for and at what amounts. There are three main types of federal student loans: Federal Stafford Loans, Federal Perkins Loans, and Federal PLUS Loans. You can read more about each specific federal student loan by clicking on the each loan type.
What Makes Federal Student Loans Different From Private Student Loans
The largest differences between federal student loans for college and private student loans for college, are that federal student loans have lower interest rates, do not require credit checks, and often times provide a wider variety of deferment options and extended repayment terms. It is because of the differences listed above that college students are advised to exhaust their federal student loan options (and other "free money for college" options such as scholarships and grants) first, and then supplement what the federal student loans will not cover with private student loans.Many college students find that federal student loans do not cover the full costs of their college expenses. When considering a private student loan it is important to do your research. Compare different private student loans from different lenders to make certain you are getting the best deal and carefully read and understand your rates, terms and repayment options. Private student loans can help bridge the gap from what you receive in federal financial aid and what your full college expenses are, but be careful to not borrow more than you absolutely need.
Federal Student Loan Articles:
Will FAFSA Refund The Money For A Class I Drop
Q: I have received money from FAFSA to help pay for my college tuition for this semester, however I would now like to drop a class I am currently enrolled in. Will FAFSA refund me the money ...FAFSA And Transferring To A New College
Q: If I have decided to transfer to a new college, but have already filed my FAFSA with the information for my current college, will my FAFSA money automatically transfer with me to my new college? A: ...FAFSA In Under 4 Minutes
For any student who thinks they do not have the time to learn about their Federal Financial Aid options for college, here is a short video about FAFSA in less than 4 minutes. Why Should I Apply ...5 Reasons To Apply For Federal Student Loans First
Most college students will need some type of financial aid to help fund their college education. College scholarships provide the ideal type of funding, because unlike student loans the money received in a scho...How Can I Get More Money From FAFSA
Q: I received very little from FAFSA last year, and as a result was forced to use a private student loan to cover the majority of my college expenses. I understand that the money a student receives ...Why Apply For FAFSA If I Will Not Qualify
Q: I keep reading everywhere that students should always apply for FAFSA, no matter what… but why should I apply for FAFSA if I already know that I won’t qualify for any federal financial aid? A: Every ...Federal Student Loans Without Cosigner
Q: I am not qualifying for any private student loans, because my credit score is too low, and no one will cosign a student loan for me. It was suggested to me that I could get federal ...FAFSA For Students Attending One Semester
Q: If a student starts college in the fall semester, but takes off the spring semester (so only attending college for half of a FAFSA year), will they still get the full years amount of financial aid ...StudentLoansForCollege.org:
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Please consider sharing this this college financial aid resource if you have found it helpful. Have a college financial aid question? Submit it on our Facebook page, or by hitting the Contact Us link below. Follow us on Twitter, or join us on Facebook for daily financial aid tips and new scholarship listings.