If you apply for financial aid, you may be offered loans as part of your school’s financial aid offer. A loan is money you borrow and must pay back with interest.
If you decide to take out a loan, make sure you understand who is making the loan and the terms and conditions of the loan. Student loans can come from the federal government, from private sources such as a bank or financial institution, or from other organizations. Loans made by the federal government, called federal student loans, usually have more benefits than loans from banks or other private sources. Learn more about the differences between federal and private student loans.
The U.S. Department of Education’s federal student loan program is the William D. Ford Federal Direct Loan (Direct Loan) Program. Under this program, the U.S. Department of Education is your lender. There are four types of Direct Loans available:
It depends on whether you’re an undergraduate student, a graduate or professional student, or a parent.
Federal student loans are an investment in your future. You should not be afraid to take out federal student loans, but you should be smart about it.
Federal student loans offer many benefits compared to other options you may consider when paying for college:
Before you take out a loan, it’s important to understand that a loan is a legal obligation that makes you responsible for repaying the amount you borrow with interest. Even though you don’t have to begin repaying your federal student loans right away, you shouldn’t wait to understand your responsibilities as a borrower. Get the scoop: Watch this video about responsible borrowing or browse the tips below it.
Be a responsible borrower.
To apply for a federal student loan, you must first complete and submit a Free Application for Federal Student Aid (FAFSA®) form. Based on the results of your FAFSA form, your college or career school will send you a financial aid offer, which may include federal student loans. Your school will tell you how to accept all or a part of the loan.
Before you receive your loan funds, you will be required to
Contact the financial aid office at the school you are planning to attend for details regarding the process at your school.
ADVERTISEMENT |
|
Latest College & Financial Aid NewsWill Taking a Semester Off Hurt My Scholarship Money?August 5, 2022 College is a big commitment and burnout is easy if you don’t pace yourself. That said, taking a semester off is a normal thing to do while pursuing your degree. Whether you need a quick break for personal reasons or exciting opportunities, like a once-in-a-lifetime trip or work experience, here’s what you need to know about your scholarship money before taking time off. [...] FAFSA Myths You Need to Stop Falling ForJuly 26, 2022 The Free Application for Federal Student Aid — more commonly known as FAFSA is the key to funding your college education. Not only can the FAFSA connect you to grants, scholarships, and work-study opportunities, but filling out the form is also the first step to applying for federal student loans. Even though filling out the FAFSA is simple and straightforward, several misconceptions still fly around it. Here are the top FAFSA myths you need to stop believing. [...] 5 Ways to Increase Your Chances of Winning a ScholarshipJune 28, 2022 Everyone wants to win a full-ride scholarship and enter their freshman year without financial stress. However, the reality is that you have a greater chance of winning smaller scholarships to aid your degree goals. Get a head start on your scholarship game this summer, so that you can head into your senior year closer to funding your college goals. [...] |