Federal Student Loans: Reviews, Application, Benefits, Types & Other Guide

Federal Student Loans: If you are looking for the perfect platform to get student loans, then you must try Federal Student Loans which are also known as government loans. It is considered to be one of the best student loan providers since its establishment.

Federal student loans allow its students as well as the parents/guardians to borrow money for college directly from the federal government.

There are basically three types of federal student loans and those are as follows: Direct Subsidized Loans; Direct Unsubsidized Loans and Direct PLUS Loans. Direct PLUS Loans are also further divided into two categories that are, Grad PLUS Loans for graduate as well as professional students, and the other one is Parent PLUS Loans which can be issued by the parents of the student.

These loans are accessible through the Federal Direct Loan Program. One must take note that federal loans offer different benefits as compared to private student loans, so you must always explore them first.

Want to know more about Federal Student Loans? Read the following article until the end in order to know whether Federal Student Loans are the best choice for you or not. Here with the help of this article, we are going to review Federal Student Loans. So, without wasting any time let’s get started.

Benefits of Federal Student Loan

Federal Student Loan basically offers more flexibility as compared to other private student loans. For instance, with federal student loans, the borrower is allowed to change their repayment options even after the loan has been disbursed, in simple words you can change your option after the loan is sent to your school.

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Some federal student loans let you for income-driven (or income-based) repayment plans, which cap payments on the basis of the income of the borrower and his/ her family size.

Federal student loans are not like private student loans as most federal student loans don’t require the borrower to have a strong credit history. This can be mainly more helpful for recent high school graduates who plan on appearing in college but haven’t had enough time in order to build up the credit of their own.

With most federal student loans, the borrower’s credit is not considered (other than Direct PLUS Loans) therefore it is not required to apply with a cosigner.

Federal Student Loan

Types of Federal Student Loans

As we have already said above that there is a total of three types of federal student loans, here we have explained all three of them.

Direct Subsidized Loans:

This kind of federal student loan is basically for students with demonstrated financial need, which has been determined by federal regulations. In this category of loan, there is no interest charged while an undergraduate student is in school at least half-time, or for the duration of deferment (a period when loan payments are postponed temporarily), or else for the duration of grace (the period, generally six months after you graduate or leave school before you start to make principal as well as interest payments).

Direct Unsubsidized Loans:

This is the second type of federal student loan which is not based on financial need. Here, your school decides the amount that you can borrow on the basis of the cost of attendance as well as the additional financial aid you receive. On the other hand, interest is being charged for the duration of all periods as well as it will be capitalized (when unpaid interest is added to a student loan’s principal amount), even when you’re in school, throughout grace, or else on deferment periods. This raises your total federal loan cost.

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Direct PLUS Loans:

Last but not the least, Direct PLUS Loans are the third type of federal student loan which are unsubsidized credit-based federal loans for parents of dependent students as well as graduate/professional students. PLUS loans are basically helpful in paying for education expenses up to the cost of attendance (the amount of money your school estimates you’ll need to appear there one year) after your additional financial aid is exhausted. In this type of federal loan, the Interest is charged throughout all periods as well as will be capitalized. This also increases your total federal loan cost.

Federal Student Loans

How To Apply For Federal Student Loans?

It is very easy to apply for federal student loans, all you will be needed is to complete the Application for Federal Student Aid (FAFSA). One must also take note that applying for federal student loans is totally free so you can apply without spending a single penny.

In addition to federal student loans, the FAFSA also regulates your suitability for additional federal student aid such as grants as well as work-study. You also need to submit the FAFSA each year you’re enrolled in college in order to receive federal student aid.

The easiest, as well as the fastest way to file the FAFSA, is online. Your application is going to be processed within 3-5 days. On the other hand, you can also mail in a paper application, but the process might take about 7 to 10 days. Therefore the online method is the best as well as fastest.

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You can submit your FAFSA without paying any cost. If in case you are asked to pay for applying, then it means that you are in the wrong place. You must take note that you should submit your FAFSA at its official site which is at FAFSA.gov.


If you are looking for one of the best loan-providing services, then federal student loans are the right choice for you. It is one of the best loan providing services that help students to get a better career by acquiring easy student loans without paying any single penny for applying. Federal student loans are also not like private student loans and the reason behind this is that most federal student loans don’t require the borrower to have a strong credit history.

In this article, we have discussed many things about federal student loans such as their benefits, types, and how to apply. Hopefully, this information will be beneficial for you.

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