Federal College Loan

It’s true that tuition costs are out of control, but don’t focus on that. Set your sites on matters you can control, like getting the financial aid you need for school. Federal student loans are real loans, just like car loans or mortgage loans. You must repay a student loan even if your financial circumstances become difficult. Federal student loans usually can’t be written off in bankruptcy. They can’t be canceled because you didn’t get the education or job you expected, and they can’t be canceled because you didn’t complete your education.

Federal student aid

Is financial assistance that’s available through the U.S. Department of Education’s Office of Federal Student Aid. Federal student aid covers school expenses such as tuition and fees, room and board, books and supplies, and transportation. Federal Stafford Loans are student loans that must be repaid and are available to both undergraduate and graduate students.

There are two types, Federal Direct Loan and Federal Family Education Loan.

If it is a subsidized Stafford loan, you are not responsible for interest while attending at least half-time and the principle is deferred. If it is an unsubsidized Stafford loan the principle is still deferred but you are responsible for paying interest on the loan. Federal plus loans are available to parents of dependent undergraduate students who are enrolled at least half-time. The plus loan is also available to graduate and professional degree students. If the loan is unsubsidized, the borrower is responsible for interest that accrues during the life of the loan. Borrowers can request a loan for up to the full cost of attendance minus any other financial aid. Graduate and professional students that borrow a Federal plus loan receive an automatic deferment while in school.

Federal Perkins Loans

Are low-interest, 5 % loans that must be repaid; the maximum annual loan amount is $4,000 for undergraduate students and $6,000 for graduate students.

There are some requisites that you need to be meet to be able to apply for federal student aid.

First of all you must be a U.S. citizen or eligible noncitizen. Be working toward a degree or certificate, have a high school diploma or a General Educational Development (GED) certificate. You will also need to meet other standards your state establishes that the U.S. Department of Education has approved and maintain a satisfactory academic progress once in school.