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.
Yes. On July 1, 2014, the HEAL Program was transferred from the U.S. Department of Health and Human Services (HHS) to the U.S. Department of Education (ED). However, it is no longer possible to obtain a new HEAL Program loan. The making of new HEAL Program loans was discontinued on Sept. 30, 1998.
Borrowers who have HEAL Program loans and members of the community may obtain more information as outlined below.
Latest College & Financial Aid News
November 19, 2020
by Izzy Hall
For many college students this year, Thanksgiving is the end-of-semester holiday rather than a traditional winter break in December. Some colleges started their semesters early so they could wrap up by Thanksgiving, while others are having students finish out the semester virtually. Whatever your circumstances, it helps to have a thought-out plan on how you will be travelling from campus to home so you can enjoy the holidays with your family. Here are our tips for COVID-friendly travel this Thanksgiving. [...]
November 17, 2020
by Izzy Hall
In recent days, two drug manufactures, Pfizer and Moderna, have both announced that their COVID-19 vaccines have had more than a 90% success rate in clinical trials. The thought of a COVID vaccine is sure to raise anyone’s spirits, and while college students are likely to be at the back of the line when vaccines are distributed, some college officials are hopeful that students may be able to be vaccinated by late next spring or summer. [...]
November 12, 2020
by Izzy Hall
As this highly unusual Fall 2020 semester is nearing its conclusion, administrators are anxious to see how college students have responded to online learning – and how many students are likely to come back for a similar experience in the Spring of 2021. A new student survey from the learning platform company Top Hat finds that while many students are still adjusting to online learning, the majority of them intend to return to school for the Spring semester. [...]