All About Federal Student Loans
Federal student loans are usually the first financing option that students turn to. In most cases, it is the best way to borrow the money needed to pay for tuition, housing, and school supplies.
What is a federal student loan?
A federal student loan is a loan that is guaranteed and regulated by the government. Because they are regulated, the interest rates tend to be lower and fixed, rather than variable. Federal student loans do not require credit checks like private loans do in most cases.
What are the different types of federal student loans?
There are four basic types of federal student loans:
Stafford loans – offers low interest rates, but limits the amount you can borrow
Perkins loans – offers fixed interest rates, but are distributed to those students with great financial need
Parent Plus loans – offered to parents of undergraduate students and have higher borrowing limits than other types of federal loans
Grad Plus loans – offered to students in professional program or graduate school, have a low interest rate, and higher borrowing limits
How do you get a federal student loan?
To qualify for a federal student loan, you must first submit an application for federal student aid. You do not have to pay anything to apply for the loan. Once you have applied, you will receive information about the different federal student loans that you qualify for.
How do you know which federal student loan is right for you?
Once you have received the loan offers, take the time to investigate each one carefully. Consider following:
- The annual percentage rate of the loan
- The total cost of the loan including fees and interest costs
- The rewards offered to you for on-time payments, interest rate reductions, or cash back
- How much the monthly payment will be
- Deferment options
It is possible to find much of the funding you need to complete your college education through federal student loans. Submit your Free Application for Federal Student Aid to learn what you are eligible for.