The federal government provides federal student loan in the for of
financial aid to meet educational costs of students. These federal
student loans are to be repaid, with interest after completion of
education. Students get most of these federal loans when they apply
for financial aid to FAFSA ( Free Application for Federal Student
Aid ). The Federal Government is the largest provider of the financial
aid to students. The federal loan amount and the type of federal loan
depends on financial need of a student and program of study which
he takes. The Expected Family Contribution ( EFC ) or any other aid
which a student receives is subtracted from the Cost of Attendance
to determine the financial need of a student. The federal loans are
of different types like Federal Stafford Loans which include Subsidized
Stafford Loans and Unsubsidized Stafford Loans, Perkins Loans, Federal
Plus Loan for parent of Undergraduate Students (PLUS) Loans etc.
Stafford Loan is part of the federal student loan program. Stafford
loans carry a low interest. Stafford Loans are federally guaranteed
loans for students. Stafford student loans are used to cover expenses
of total cost of education which include tuition expenses, books and
boarding and other expenses related to education.
More Details on Stafford
Federal Perkins Loan is loan program for both graduate and undergraduate
students which provide a low interest rate to students to meet their
financial need. The school of a student lends Perkins loan to students.
This Perkins student loan is given from government funds.
More Details on Perkins
Federal Plus Loans are funds provided to parents of undergraduate
students. These plus loans help parents to afford cost of college
education. The costs like cost of books, supplies, boarding, tuition
and other educational expenses which are not covered by financial
aid program can be covered with the help of Parent plus loan. It helps
the parents of undergraduate students to supplement their children’s’
financial aid package. In Graduate Plus Loan, the interest rate is
fixed at 8.5%. Credit check is also required in case Graduate Plus
More Details on Plus Loan...
Federal Pell Grant is federally funded grants which provide financial
aid to students to assist students in meeting their educational costs.
Unlike a loan, Pell grant is form of gift does not have to be repaid.
Pell Grant eligibility is restricted only to undergraduate students
who have not earned a bachelor’s degree. Only undergraduate
students can apply for Pell grants. Pell Grants provide a foundation
of financial aid to which other aid may be added.
More on Pell Grant...
FEDERAL SUPPLEMENT EDUCATIONAL OPPORTUNITY GRANT:
FSEOG or Federal Supplement Educational Opportunity Grant is a form
of federal financial aid which supplements Pell Grants of the students
who have exceptional financial need. FSEOG is a form of gift and unlike
federal loans, it is not to be repaid or paid back. Applicants who
apply early for FSEOG have a better chance to receive aid. One should
try to send FAFSA ( Free Application for Federal Students Aid) in
the start of the year.
More on FSEOG...