About Federal Student Loans

There are three types of federal student loan programs. The two most common are backed loans and unsubsidized loans. The interest on the subsidized loan is paid by the federal government while the student is attending school or inside the grace period. The interest on the unsubsidized loan is built up as the student is either attending school or throughout the grace period and is then owed through the student. The third type of financial loan is the PLUS loan. This loan is really taken out by the parents from the college student, and repayment begins six months after the loan money is obtained.

There exists a limited to how much students can borrow in subsidized loans. It is also possible that a student can get the max amount and then have to health supplement with an unsubsidized loan in order to spend the full tuition amount.

To apply for a federal student loan program, you need to fill out the actual Free Application for Federal Student Help (FAFSA). The application can be done and submitted online. The deadline for your application is June 30th every year. If you are still a reliant, your parents will have to submit their own tax information. If you are an self-employed student living on your own or time for school, you can supply your personal tax information. Like grants, government student loans are based on income. Just low-income students are eligible for subsidized financial loans.


Federal student loan programs are easy to apply for and also to be approved for. They are low interest rate loans and repayment doesn't begin for six to 9 months after you leave university. If you are unemployed immediately following college, you can also apply for action on your grace period. This can give you an additional 6 to nine months to begin repayment. The monthly installments are generally low and the loan could be paid off of the course of ten years.

Not repaying a federal student loan has huge implications, including the potential of having your income garnished and your tax returns withheld. You might be also at risk of becoming sued. Federal student loan programs are also not really eligible to be including in a personal bankruptcy.