Many students finance their education through federal student loans. In this article we’ll explain what they are, how you get them, and how repayment works.
What Are Federal Student Loans?
Federal student loans are monies that you borrow from the government that must be repaid once your degree is complete, or you leave your educational program. They are broadly grouped into two categories: The William D. Ford Federal Direct Loan (Direct Loan) Program and The Federal Perkins Loan Program.
What is the William D. Ford Federal Direct Loan Program?
The William D. Ford Federal Direct Loan is also known as the Direct Loan Program. There are four types of direct products offered under this program.
Direct Loans are awarded through the school you attend—most colleges and universities in America participate in this program.
What is the Federal Perkins Loan Program?
This program is for students with exceptional financial aid needs, and depends on the amount of funds available at the school you attend.
The Perkins Program is not as widely available as the Direct Program, and students should check with the school they attend to see if they are eligible to participate.
How Do I get a Federal Student Loan?
To receive a student loan, fill out a FAFSA at fafsa.ed.gov. Once your application has been received, it will be reviewed. Your award amount will then be determined and you will be notified via email. Your chosen school will also be notified and funds will be released to them once you register for your classes. If there are any funds remaining, your school will give you the choice of either receiving.
How Do I Repay My Loan?
Six months after you graduate or discontinue your education program, you will be expected to start repaying your loan. Your monthly payment will be determined by your loan amount and income. You will be contacted by your loan servicer, usually by mail, with information regarding where to make your payments.
A federal student loan is usually the easiest source of financial aid. Once you know how to finance your education, you are one step closer to your goals. To help you get even closer to these goals, join Hardship Aid and explore top education programs in your city through our preferred education services.