About Federal Student Loans

The Federal Student Loan Program that's been set up by the federal government is designed to make getting a post-secondary education easier for college students, while giving these students plenty of time to obtain a job before asking for repayment. These loans are made directly to the student and there isn't any payment required as long as the student is actually attending school at half time status. If the actual student drops below half time status or graduates totally, the account immediately goes into its 6 30 days grace period.

The student has this 6 month period to either sign up for more classes to get back up to fifty percent time status or begin repaying the loan. This particular grace period can only be implemented once, so if your student drops below half time status once once again, he or she will have to begin payment immediately.

These loans have a very small annual limit that may be taken out, as the federal government does not want students to get involved with too much financial difficulty. Freshmen students can borrow as much as $5, 500 per year, sophomores can borrow $6, 500, as well as juniors and seniors can borrow $7, 500 each year.

Students who are living on their own can borrow a bit more to help out with their living expenses, nevertheless, so they can focus on their studies without worrying about where their rent money can come from. The government also takes care of the eye payments while the student is in school, so the amount borrowed is the amount that'll be due upon graduation with interest starting from which date.