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US Federal Student Loan

Receiving a college education may be the single most important accomplishment that one may achieve in their entire life time.

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The US Federal Student Loan program encompasses a vast sector of the Department of Education’s $56.0 billion budget of discretionary appropriations. In fact, the US Federal Student Loan program facilitated the administration of $90 billion worth of grants, loans, and student-employment programs to aid through various lending entities. The money from the US Federal Student Loan program went on to assist an estimated 11 million college students, their dependents, and their families.

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The U.S. Department of Education offers federal loans through the Federal Family Education Loan Program (FFELP) and the Federal Direct Student Loan Program (FDLP). There is a variety of federal student loan programs.

Commonly used federal loans by students and their families include:

• Stafford Loan
• Parent PLUS Loan
• Graduate Student Plus Loans
• Perkins Loans
• Direct Loan Program

According to US Department of Education statistics published in 2006, almost 50 percent of American undergraduates receive some form of aid from the government. Only 34 percent took advantage of the flexible and affordable US Federal Student Loan aid. The United States Department of Education supplies Federal Student Loans to students attending four-year or two-year public or private degree-granting institutions, which chose to participate in the federal funding programs. The government authorizes these loans under the amended specifications of Title IV from the reenacted Higher Education Act in 1998. Federal student loans generally cover school expenses, including tuition and fees, room and board, books and school supplies, as well as any transportation expenses. Loans can also help pay for technology or school supply mandates as well as for necessary dependent care. Federal Student Loan are preferable to other offers made by private lending companies, because of the extremely low lending interest rates. For example, the 2007 College Cost Reduction and Access Act cut the fixed interest rates on the subsidized Stafford Loan, a federal loan program offering, to 6.8% this year. The Act will gradually drop interest rates to a mere 3.4 % by the year 2012, which astonishingly lower than virtually all other commercial lending offers.

Acquiring a Federal Student Loan is simple and easy. The Free Application for Federal Student Aid, or the FAFSA, is the application for all government educational loans as well as Federal Student Loans. It is quick and easy to fill out, and the 2008 questionnaire is available electronically online, via printable downloads, or through the mail at the request of a toll-free phone call. The amount students are eligible to borrow from federal loan programs completely hinges on their personal, as well as their parents, financial standings. The questionnaire includes questions regarding personal and family assets, current personal expenses and liabilities, as well as income tax information from the previous year. Prospective loan applicants can estimate the amount they potentially could request by using the US Department of Education’s FAFSA calculator.

Besides the tremendously low interest rates offered by the federal government, the terms and allowances for repayment of the loans supersede any other offerings within the lending community, whether private or public. Allowances for forbearance due to financial hardship, consolidation programs and refinancing, and loan cancellation work incentives ultimately prove highly influential in many students’ financial aid decisions. Now is the time for students to take control of their lives and their future. Students’ collegiate financial situations may very well prove determined by a few clicks of the mouse. Information and a working knowledge of the intricacies of the federal lending options for students can ultimately save students and the families untold amounts of money.

Need a US Federal Student Loan?
Apply for a US Federal Student Loan today.