Federal Student Loans
The Federal Government gives out more than $70 billion in low-interest loans each year. Nearly all students are eligible for federal loans regardless of their credit score. The repayment plans are income-based, and borrowers are usually granted a grace period when no payments are due. A good place to find federal loans is the U.S. Dept. of Education's
Federal Aid First. This website has a wealth of information about federal student loans. Among the largest names in federal student loans are:
- Stafford Loans – These are government-secured student loans available to students at a lower rate than most other loan options. Another perk to a Stafford Loan is that no payments have to begin until after you graduate from college. Regardless of credit, almost every student is eligible to receive a Stafford loan. Based on individual needs, the loan can be subsidized or unsubsidized.
- Parent PLUS Loans – With Parent Loans for Undergraduate Students, your parents have the option of getting a loan that will cover the entire expense of your college experience, similar to a private student loan.
- Perkins Loans – The Perkins Loan caters to undergraduate and graduate students with low-interest loans. Around 1,800 colleges participate as lenders, drawing funds from a federally funded pool. Awards are based on exceptional financial need.