Federal Student Loans
Federal student loans allow students and their parents to borrow money through loan
programs that are guaranteed by the federal government.
The most popular federal loan program is the Stafford loan which allows students
to borrow at a low, fixed interest rate. For any students in need of borrowing for
school expenses, the Stafford loan is the best
place to start.
The Stafford loan comes in two varieties – subsidized
and unsubsidized. Subsidized loans are offered to students with a demonstrated financial
need and for students who qualify for this loan, the government pays the interest
on the loans while the student is in school, during the grace period and during
Beyond the Stafford loan, the federal government
also sponsors the Perkins Loan program. The
Perkins Loan is a need-based student loan which carries a low fixed interest
rate and a 10 year repayment term. Not all students can qualify for a
Perkins Loan so check with your financial aid office to determine if this
program is right for you.
Students must fill out a FAFSA form to be eligible for any federal financial aid.
Financial aid deadlines are always June 30th of the academic year you are applying
for. Therefore, if you are applying for the 2008-2009 academic year, you must submit
your FAFSA application by June 30th, 2008. Applications must be re-submitted each
year the student attends school.