Federal Student Loans Review: If you are dreaming of studying in the US but are worried about the fees, then federal student loans may be the best option for you. These loans are provided by the US government and help students complete their studies.
Why choose federal student loans?
No credit history required: You do not need to build a credit score.
No co-signer required: You do not need a guarantor.
Flexible repayment options: You can repay the installments according to your income.
Government protection: The government provides a variety of protections to prevent you from defaulting.
How many types of federal student loans are there?
There are two main types of federal loans for undergraduate students:
Subsidized loans: These loans are given to students who need financial aid. Interest does not accrue on this loan as long as you are studying or are in default.
Unsubsidized loans: These loans are available to all students, whether they need financial aid or not. Interest on this loan starts accruing from the time you get the money.
How to apply?
To apply for a federal student loan, you have to fill the FAFSA (Free Application for Federal Student Aid) form. This form is available online and asks for information about your financial situation. Based on the FAFSA, you will know how much loan you are eligible for.
What about private loans?
If you are not able to get the full fee from the federal loan, then you can also take a private loan. But keep in mind that the interest rates on private loans are higher and the terms are also strict. Therefore, give preference to the federal loan.
