Federal Student Loans

Federal student loans are financial assistance offered by the government to help undergraduate and graduate students achieve educational degrees. A federal student loan can provide financial support for most school-related expenses, including but not limited to tuition, board and lodging, course projects and computers. Federal student loan programs are administered under the supervision of the U.S. Department of Education.

Types of Student Loans

There are several federal student loans available to students to help pay their college educational expenses. The loans all differ in qualification requirements, loan amounts, interest rates, and other policies.

Stafford Loans--These are composed of two loan programs, namely the Federal Family Education Loan and the William D. Ford Federal Direct Loan. These loans can be subsidized or unsubsidized and have fixed interest rates.

PLUS Loans--These are specifically offered to parents of dependent students and individuals taking up graduate and professional degrees. Interest rates can be fixed or variable, depending on the date the loan was disbursed.

Perkins Loans--These are devoted to post-secondary education and graduate students with exceptional financial needs. The interest rate is calculated at the rate of 5% of the unpaid balance per year.

Consolidated loans
--Eligible borrowers can combine multiple federal student loans into one single loan through the consolidated loan program.

Eligibility Requirements

All students who want to be considered for federal student loans are obliged to fill out the online application form provided on the Free Application for Federal Student Aid (FAFSA) website. Moreover, you are required to sign a promissory note that will be furnished by the financial assistance department of the school where you are or will be enrolled.

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