Federal college loan can help you pay your way through college. Federal college loans are loans given to students by a government agency. They are different from federal grants as you are expected to pay back the money with interest through monthly payments.
Need-based federal college loans have made it easier for students to get their college education. A major factor in determining how much you can get in need based federal college loans is your household income and expenses.
One major benefit of most federal college loans is that you do not have to pay interest while you are in school. The government will subsidize the interest payments. Also you may be offered a ‘grace period’ after graduation before the interest starts accumulating on your balance
Three main types of federal college loans include the Stafford loan, PLUS loan and the Perkins loan.
There are subsidized and unsubsidized federal Stafford loans available. Subsidized loans mean the government will pay for the interest while you are in school, and thus they are mostly need-based loans. On the other hand unsubsidized loans mean you will have to pay the interest fees from the time you get the loan, but you do not have to meet any financial need requirements.
Federal Perkins loan is another option for students. They are distributed through a government agency and are usually low cost loans. Federal Plus loans are available for parents of students to fund their kid’s education. A credit check is often required.
Besides federal college loans, you also have the option of using private loans such as the Sallie Mae loan to finance your college education.
College tuitions can cost thousands of dollars. Therefore a majority of students need some kind of aid and loans to help pay for it. Federal college loan is a great alternative for those who can not afford to take out high expense loans from private institutions.
With the help of federal college loans, students can get an education that will help them earn a higher income and get job security for the rest of their lives.
You can get up to 100% of college costs financed through federal college loans. Your need-based loan amount will be determined according to the household income and minus any financial aid you are already receiving.
Federal college loans are usually low cost with easy repayment options, and therefore the choice of the overwhelming majority of college students.
To apply for federal college loans you will have to fill out the Free Application for Federal Student Aid (FAFSA). The FAFSA application needs to be filled out every year you are in college so you can update your information and your need for that year determined. Be sure to file before the deadline approaches, as much aid may be sent out on a first come first serve basis.
Federal student loans may have different eligibility requirements such as a US citizenship or requirements for being a full time student.