Federal Student Loans Review, Types, How To Apply And Other Guide

Federal Student Loans: There are many students who are in search of students loan but end up finding some expensive or fake student loan providers without getting proper guidance. If you are in confusion regarding the same then you must try Federal Student Loans which are also known as government loans.

These days there are so many fake student loan providers because of which it’s hard for us to trust any of these. But federal student loan, on the other hand, is considered to be one of the best student loans providers since its establishment.  One must also take note that federal loans offer different benefits as compared to private student loans, so you must always explore them first.

Federal Student Loans let its students along with the parents/guardians to borrow money for college directly from the federal government. There are three types of federal student loans that can be accessed through the Federal Direct Loan Program.

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….

About Federal Student Loans

Student Loans are not always similar, Some are Federal while Some are Private. Some Student Loans are designed to help financially need borrowers. Some Student Loans offer lowers interest rates. Some Student Loans offer important borrower protections. Many Students have to combine various types of Loans to Cover their College Fees. Federal Student Loans are likely the Best Student Loans Options. they provide more generous borrower Protection than the Private Student Do, including the ability to switch to an income-driven plan in case You are not able to Afford Your Monthly Payments or to Defer Payments If you lose Your Job. The Free Application for the Federal Student Aid or FAFSA is the Application for all Federal Student Loans.

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Federal Student Loans Review, Types, How To Apply And Other Guide

Types Of Federal Student Loans

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 is 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.

Direct Subsidized Loans

This type of federal student loans is basically intended for undergraduates with financial needs, which has been determined by federal regulations. It awards a lifetime maximum of $31,000 per student (of which only $23,000 can be sponsored) as well as comes with an interest rate of 5.045 percent for the 2018-19 academic year.

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, or else for the duration of grace.

Your interest tab is going to be picked up by the U.S. Department of Education throughout school, for the first half-year after you’re done with school, as well as for the period of a deferment.

Direct Unsubsidized Loans

This is the second type of federal student loans for undergrads as well as graduate students, together with those going for a professional degree, and awards up to $57,000. This type of federal student loans 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 additional financial aid you receive and there is no financial need requirement. 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. Graduate students, on the other hand, owe 6.595 percent.

Direct PLUS Loans

This type of federal student loans is basically covered whatsoever costs remain. It’s for parents of undergraduates, or for graduates as well as professional degree students, and you can borrow up to the full cost of attendance, less other financial help you receive. The interest rate for the next academic year is 7.595 percent. 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.

Are Federal Student Loans based on a Credit Score?

Well, not in all cases but yes if you are applying for Direct PLUS loans, then you do require decent credit score as it does run a credit check on applications. So if in case you have an “adverse credit history” you’ll need to either find an endorser who are going to take on the responsibility of paying the loan if you cannot, or prove to the Department of Education, with documentation, that your poor credit report is because of the conditions beyond your control.

Private loans, at the same time, will run one, and then charge you more if you have a poor score. Usually, Private loans, on the other hand, offer few or none of these benefits. Rather than borrowing money from the federal government, you’re going to take a loan from a bank or financial institution, which means the terms and rates are going to vary from lender to lender.

Federal Student Loans Review, Types, How To Apply And Other Guide

How to Apply for Federal Student Loans?

It is very easy to apply for federal student loans, all you have to do is to complete the Application for Federal Student Aid (FAFSA). You must also take note that applying for federal student loans is completely free so you can apply deprived of spending any single penny. If in case you are asked to pay money for applying then you must be on the wrong website.

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In addition to federal student loans, the FAFSA also controls your appropriateness for additional federal student aid like grants as well as work-study. Furthermore, you also need to submit the FAFSA every year you’re enrolled in college in order to get federal student aid.

The easiest, as well as the fastest method to file the FAFSA, is online. Your application is going to be processed within 3-5 days. After that, you can also mail in a paper application, but at the same time, the process may possibly take about 7 to 10 days. For that reason, the online method is the best as well as fastest. You can submit FAFSA deprived of paying any cost.


Federal student loans don’t require the borrower to have a strong credit history, therefore it is much better than most of private student loans. With the help of 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.