What Types of Federal Student Loans Are Available?

Federal student loans are offered to college students who need to borrow money to pay for school and other education-related expenses such as books and housing. These loans do not require a credit check or repayment while the borrower is still in school, and are usually a good way for students of all ages and income levels to help pay for higher education.
  1. Subsidized Loans

    • Subsidized Stafford Loans do not incur any interest to the student while he is attending school. Such loans are offered to those who exhibit the most financial need.

    Unsubsidized Loans

    • Any student who is a U.S. citizen and not a convicted drug felon can take out unsubsidized Stafford Loans, which are not based on financial need. Such loans do incur interest while the student is in school.

    PLUS Loans

    • The federal government also offers PLUS loans, which parents can sign up for to help pay for their child's education. However, good credit and provable income are required for these loans.

    Loan Consolidation

    • Once the student leaves or graduates school, the government also offers loan consolidation of both federal and private student loans. This rolls all debts into one payment and sometimes lowers payments and interest.

    How to Apply

    • Applying for any student loan starts with filing a Free Application for Federal Student Aid, also known as a FAFSA (see Resources below).

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