Federal Student Loans

You do not have to feel let down when you have exhausted all your resources for scholarships and grants and yet not have enough to keep you in school.  There are still federal student loans that you can turn to to get funding for your educational needs.  Even if your funding would be considered a loan, you do not have to worry about your repayments on it until after you have earned your degree or secured regular employment. 

Student loans extended by the federal government, just like private loans, have eligibility and credit requirements.  These requirements, however, are not as stringent as those offered by private financing companies.  Likewise, the terms that are extended to students in need are also more flexible and lenient. 

Educational funding for students in need could be applied for with the Federal Direct Lending Program or the FDLP under the United States Department of Education.  There are several of these federal loans specifically extended to students with financial need.  Students availing of these loan facilities should at least be in school at half time status.  Enrollments of less than this load would be subject to the six month grace period within which repayments on the student loans would have to start.  Payments will be deferred once the student enrolls on at least a half time status once again.  The maximum amount of loan that a student can avail of depends on their tenure in school.  Depending on their demonstrated financial need, the student loan may or may not be subsidized by the federal government.  Loans that are subsidized by the government will have the same outstanding amount at the start of the repayment period as the original amount taken out at the inception of the loan.

While federal student loans extended directly to students are payable at a much later date, student loans that are granted by the government to dependent children are subject to repayments right away.  These loans under the Parent Loan for Undergraduate Students (PLUS) program have higher loanable amounts than direct student loans.  It would be worthy to note that parents and students are not held accountable as co-borrowers in this kind of an educational loan.  Only the parents are financially held liable for the repayment of these loans.