Federal Student Loans
Find the right federal student loan for you
- Get customized student loan details based on your needs
- Compare multiple student loans side by side
- See the details of each student loan option in a single view
- Click to apply online or by phone
- Rate reductions
- Waiver of fees
- Principal reductions
- Cash rebates
- Waiver of final payments
There are some benefits that you get just for taking a particular loan, while others you must earn. Lenders can require you to follow certain rules in order to qualify, such as using a bank account to automatically pay (debit) you monthly payments and/or making all of your loan payments on time.
Sample $5,000 Loan - Examples of Possible Savings for Typical Borrower Rewards
| No rewards | On-time payments 3.75% Principal Reduction after 36 on-time payments | Auto-debit of payments 0.25% Interest Rate Reduction for automatic debit of payments | |
|---|---|---|---|
| Monthly Payment | $61.19 | $61.19 | $61.19 |
| Number of Payments | 120 | 116 | 114 |
| *Total Cost of Loan | $7,342.95 | $7,044.85 | $6,938.36 |
| 1st Payment Due | Sep 2010 | Sep 2010 | Sep 2010 |
| APR | 5.39% | 4.92% | 4.74% |
*The Total Cost of the Loan will change based on a combination of the monthly benefits and APR for each type of reward.
- A certain number of consecutive, on-time payments
- Automatic direct debit of your monthly payment from a checking or savings account
Check with each lender to see how and if you qualify for borrower benefits offered.
- Failure to continuously pay on time
- Discontinuing the use of automatic payments from a checking or savings account for the monthly payment
- Not understanding the definition of "on-time" payment
- Cancellation of borrower benefits by the lender or the sale of the loan to another lender
- Failure to continue to meet the requirements for the borrower benefits means you may owe the lender the amount saved from using the benefits.
For more information on borrower benefits, check with your lender.
Understanding Student Loans
Student loans are used expressly for paying for college costs such as tuition, room & board, and other expenses. Federal student loans are backed by the U.S. Government and require the student to fill out the FAFSA (Free Application for Federal Student Aid).
There are several options for filing a FAFSA. Review the options and choose the one that best suits you:
- Do it yourself by using the Federal government's online application. Go to www.fafsa.ed.gov and fill out a FAFSA online, or call 1-800-4FEDAID (1-800-433-3243).
- Get some help by usinga FAFSA preparation service. Go to www.fafsa.com or call (866) 514-6757 to speak with a Student Aid Advisor. For a low fee, you can spend quality time on the phone completing your application and getting answers to all your questions, as well as peace of mind with a full error check. Using this option also allows you to complete the FAFSA application prior to January 1st and gets you an early estimate of the EFC (Estimated Family Contribution)
- File a paper FAFSA. This is not recommended for most, as there is an extremely high rejection rate. Well over 90% of all FAFSAs are filed electronically. Paper FAFSA forms are available at most guidance counselor and college financial aid offices.
- Stafford Loans have low, fixed interest rates but lower borrowing limits, so students often need to find funding from other sources to meet their needs. They come in two forms:
- Subsidized. No interest accrues on subsidized Stafford Loans while the student is enrolled, but the student must qualify by demonstrating financial need through the FAFSA.
- Unsubsidized. Interest does accrue on unsubsidized Stafford Loans while the student is enrolled, but nearly every student is able to borrow through the Stafford program regardless of need.
- Perkins Loans are obtained directly through the school, and have very limited availability. They have low, fixed interest rates but lower borrowing limits, so students often need to find funding from other sources to meet their needs.
- PLUS (Parent Loan for Undergraduate Students) are federal student loans for parents of undergraduate students. PLUS loans have a fixed interest rate and higher borrowing limits than other federal loans.
- Graduate PLUS Loans are federal student loans for Graduate or Professional Program Students that also have a fixed interest rate and higher borrowing limits than other federal loans. Grad PLUS loans are meant to supplement Stafford Loans. Make sure to borrow the maximum in Stafford Loans before using Grad PLUS.
How to Use the Student Loan Comparison Tools
Save time, energy and money by comparing multiple student loan options from a variety of leading lenders. Simply enter the amount you need to borrow and a little bit about when you need the money and where you go to school to see a customized list of student loan options.
What to Look for in a Student Loan
Use the comparison tools on this site to consider all of the costs of a student loan, including fees and rates. Students should always borrow the most they can in federal loans first (such as Perkins and Stafford) and then compare private student loans for the best rates, fees and costs.
Examine all of the attributes of each loan, such as:- the annual percentage rate (APR)
- the total cost of the loan
- the monthly payment
- the loan's borrower rewards
- student loan deferment options
FAQs
What are borrower benefits?
Borrower benefits, or loan discounts, can save you money on your loan. Review the example below to see how borrower benefits can change the pricing on a loan. Common borrower benefits include:
- Rate reductions
- Waiver of fees
- Principal reductions
- Cash rebates
- Waiver of final payments
There are some benefits that you get just for taking a particular loan, while others you must earn. Lenders can require you to follow certain rules in order to qualify, such as using a bank account to automatically pay (debit) you monthly payments and/or making all of your loan payments on time.
Useful information and insights on student loans, financial aid, college funding and student loan consolidation
Tips
Always fill out the FAFSA, even if you think you won't qualify for financial aid.
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