Government Student Loans


Government student loans are a guaranteed federally funded government financial resource that offers incoming and current college students and their parents with Federal student loans by making use of the Federal Family Education Loan Program, otherwise known as FFELP. Government student loans provided by the Federal Family Education Loan Program are available in three forms. The first being the Stafford Loan, which is by far the largest part of FFELP's funding resources, providing students displaying a need with the loans necessary to achieve the higher education that they have set their goals to. The Stafford Loan does not require a credit check and thus is readily available even to students with bad credit ratings. The Stafford Loan is set up in such a fashion that the federal government takes care of the interest on the loan paying it until such time as the student has been out of school for a full six months providing them with a grace period long enough to become gainfully employed.

The second government student loan offered through the Federal Family Education Loan Program is called PLUS (Parent Loan for Undergraduate Students) where an incoming college student's parents can fund up to one hundred percent of their child's college education with a subtraction of any grants or scholarships. This loan is being offered at a very reasonable six and one tenth percent interest rate, making it a far less long-term cost effect then spending your hard earned and long saved for retirement fund or taking a chunk out of your home equity. This interest rate can be reduced by as much as two percent by checking with your school to see what borrower benefits program they put forward. There is even a borrower benefits program that will reimburse you three percent of the total interest investment at the time of the loan's disbursement.

The third government student loan that the Federal Family Education Loan Program makes available to students will be of great use at the end of their college career. The Student Loan Consolidation is a loan where you may opt to put some or all of your student loans together into loan that has a single substantially lower payment spread out over a term of from 10 years to 30 years depending on the amount left outstanding. The interest rate offered at this point on a consolidation loan is running 5.375 percent with the potential of much less with the use of the borrower's benefit program available at your school.


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