Federal Student Loans for College
What is a Federal Student Loan?
A federal student loan is a low-cost loan for college backed by the U.S. government. You must complete the FAFSA to become eligible for federal student loans. There are several types of federal education loans available to help undergraduates, graduates and parents pay for college. You should only consider using federal education loans once you have exhausted free money, such as scholarships and grants. We’ve put together a Federal Loan Guide to help you understand more about federal student loans and which loan type you may be eligible for:
Student Bank Federal Loan Guide
Benefits of Federal Education Loans
Federal education loans include many benefits that make the loans easier for students and parents to pay back. Some of these benefits include:
- No payments until 6 months after you graduate or you drop below half-time enrollment
- You can apply for temporary payment relief on your loans if you run into financial difficulty (“deferment” and “forbearance” options available)
- There are several different student loan repayment plans available to fit your needs
- No credit check
- No prepayment penalty
Types of Federal Student Loans
Make sure you research the federal student loan(s) available to you, including the interest rate and maximum borrowing limits.
Deciding Whether to Use Federal Student Loans
You and your family should always weigh all of your options before deciding to borrow money for college. Here are some questions that you should answer before incurring college debt:
- Should we use our cash and savings instead of borrowing federal student loans? Does doing this expose us in the event we need the money for other priorities? Will this use up all of our emergency savings?
- Are we ready to be responsible for the monthly loan payments and interest?
- Which type of federal student loan is best for our family?