Federal Student Loans
Quick Link:
FAFSA Application form for Federal Student Loan
Scholarships and grants are great if you can get them but eventually most students need to find an alternative way to finance education. Federal student loans are the most popular loan for students in college education and for good reason. Federal student loans generally have:
- low interest rates set by the government
- an option to postpone repayments
- longer repayment terms
- less stringent credit requirements.
There are three federal student loans to consider: Students and parents are advised to fully explore federal loans ahead of any other form of borrowing. Stafford loans have a variable interest rate that is set by the government every July to reflect market conditions. There are two types of Stafford loans. The Subsidized Stafford loan is the most sought after form of borrowing among students. As long as you are studying for your degree, the government will pay the interest on the balance of the loan – which means you benefit from some significant savings. Unsubsidized Stafford loans start accumulating interest from the day you receive the loan. You can opt to pay the interest on a monthly basis or alternatively have it added to the balance owed each month. It is always better to pay the interest on the loans while you are in still in school. You can apply for Stafford loans by completing the FAFSA (Free Application for Federal Student Loan) here. Alternatively, you can visit your college’s financial aid office for details on how to apply for a Stafford loan. Students are required to take a short class on repaying loans before they can qualify for a Stafford loan. Make yourself at home in our Forum and find out what everyone else in America thinks about student loans. There is also our up-to-date News section for all the latest on personal finance. If you need help finding a provider or would like to review a company, please don’t go without checking out our A-Z directory.
Federal Stafford Loans
Subsidized Stafford Loans
Unsubsidized Stafford Loans
Applying for Stafford Loans
