Getting Help from the Government with Federal College Loans

If you need money to pay for college, consider taking out a student loan. According to the College Board, loans make up the largest form of student financial aid, comprising a total of 54 percent of the total student financial aid awarded each year for college attendance. There are two major types of college loans--loans based on financial need and non-need based loans--and many of these loans are offered through federal government programs.

Need-Based Federal Loans for College

The federal government is the chief provider of need-based student financial aid. These loans usually have low interest rates, delayed repayment, and an interest subsidy paid by the federal government on the interest that accrues while you're in college. The most typical need-based loans are the Federal Perkins Loan, the Federal Subsidized Stafford Loan, and subsidized direct loans.
Since these loans are need based, to qualify for federal loans, you'll need to report your family income by filing a FAFSA, the Free Application for Federal Student Aid. The federal government awards student financial aid on a first-come, first-serve basis, so submit your FAFSA to the federal government as soon as possible after January 1 of the year you plan to attend school.

Federal Non-Need Based Loans

The federal government, colleges, and banks all provide non-need based student loans. These loans usually have higher interest rates, no interest subsidy, and a requirement to begin to repay principal immediately upon graduation from college. The standard non-need based loans are the Federal Unsubsidized Stafford Loan, PLUS Loans (a loan for parents), and private loans like the GATE loans. To qualify, you'll need to file a FAFSA. Non-need based loans often require a credit check, and approval is required.
For many people in need of money for college, loans play a key role in covering tuition and college-related expenses. The many available loans providing money for college mean that no matter what your financial situation, you can likely find the student financial aid you need.
Source:
College Board

H.L. Staples teaches at Syracuse University in on-campus and distance learning formats. Her articles have appeared in The Boston Review, Denver Quarterly, The Georgia Review, and elsewhere.