Ad Blocker Detected
Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker.
A Federal student loan is designed to help you pay for college. Federal student loans generally offer the lowest rates for college monies. You also get to defer your payments until after graduation. To apply, you need to fill out a free application for Federal student financial aid called FAFSA. You can fill it out and mail it in or complete the application over the internet. This application will ask you information about your household composition, household income, assets, and education information. This information will help determine the maximum amount of loan you are eligible for.
Once your FAFSA has been reviewed you will get a letter known as SAR, short for student aid report. It will discuss Federal Pell Grants and Federal Student Loans you are eligible for. Remember that you will still have to apply for the loan. It is best to complete your FAFSA right after your tax return in done so you will have plenty of time for it to be processed and to get your federal student loan application completed.
There are several types of federal student loans. The most common is the Stafford Federal Loan. This is for undergraduate students only. To be eligible for a federal student loan you must be a US citizen, have a completed FAFSA on file, it must be determined you have a financial need, you must be enrolled at least part time in an accredited college, and you can’t be in a default status for any other federal student loan. After your loan is approved and you have signed the promissory note, the funds will be sent to the college you are attending. Any funds remaining will be disbursed to the student at a time specified by the college. Be careful how much federal student loan money you borrow because you will have to pay it back in the future.
Parents of undergraduate students have the option of borrowing money on the behalf of their undergraduate student. This is called a PLUS loan. You must complete the Stafford Federal Student Loan application process first. A Perkins Federal Student Loan is for either graduate or undergraduate students. This type of loan has a 5% interest rate and is the lender is your school. However the funds are guaranteed by the government. You will repay a Perkins loan to the school you borrowed it from.
Federal student loans can be either subsidized or unsubsidized. A subsidized loan has interest that accrues while you are in school. The government pays it for you. On an unsubsidized loan, the student is responsible to pay the interest even while they are still in school. You also have the option of consolidating your Federal student loans when it is time for repayment to begin. It is important that you pay back your Federal student loans as specified in your promissory notes. You will not be extended funds for school in the future if you default and your credit will be affected.
Related Blogs
- Related Blogs on A Federal student loan is designed to help you pay for college
