Why get a federal student loan?

While every student wants scholarships and grants, not everyone can cover the entire cost of college or career school through those options. Loans can make your education possible and affordable. A federal student loan is a low-cost loan and a better option than a private student loan because:

Here are some benefits of federal student loan

1. You will not have to start repaying your federal student loans until you leave school, attend less than half time or graduate.

2.The interest rate on a federal student loan is fixed, currently at 6.8 percent, and almost always lower than on a private loan—and much lower than on a credit card!

3.Students with greater financial need might qualify to have the government pay their interest while they are in school. This is called a subsidized loan.

4.You don’t need a credit record to get a federal student loan (except for PLUS Loans for graduate and professional students). Federal student loans help you establish a good credit record.

5.You don’t need a cosigner to get a federal student loan.

6.Free help is available at 1-800-4-FED-AID.

7.Interest might be tax deductible.

8.Loans can be consolidated into the Direct or FFEL Loan Consolidation program that has comfortable repayment plans and other benefits. See www.loanconsolidation.ed.gov for more information.

Who can get federal student loans?

To be eligible for federal student aid, you must

• be a U.S. citizen or eligible noncitizen (for most programs) with a valid Social Security number (SSN);

• be working toward a degree or certificate;

• have a high school diploma or a General Educational Development (GED) certificate; pass an approved ability-to-benefit (ATB) test (if you don’t have a diploma or GED, a school can administer a test to determine whether you can benefit from the education offered at that school); meet other standards your state establishes that we have approved; complete a high school education in a home school setting approved under state law;

• register (if you haven’t already) with the Selective Service, if you’re a male between the ages of 18 and 25;

• maintain satisfactory academic progress once in school.