Diving into federal student loans
Confused about all the recent changes in the federal loan market? Read on: this article will offer explanations for all of the important changes, and tell you what you need to know.
On July 1, 2010, all federal student loans will now originate from the Direct Lending program and private banks will no longer issue federal, government-backed student loans.
What does this mean for you?
Not much will change for the consumer. However, you will have to go through your school's financial aid office as opposed to private lenders to find federal loans as of July 1.
What kinds of federal student loans are there?
- Stafford Loans are the most common federal student loan and should always be the first loan to which you apply.
- PLUS Loans are student loans taken out by parents to help fund their undergraduate student's tuition.
- GradPLUS Loans are low, fixed interest loans for graduate and professional students to help cover up to the full cost of their education.
Is my student loan interest tax deductible?
Some student loan interest is tax deductible, so if you haven't filed your taxes yet, speak to a tax professional. Further, while you have your W-2 on hand, complete the FAFSA (Free Application for Federal Student Aid) if you haven't already done so. You'll need your W-2 for the FAFSA, so tax season is a good chance to get both your FAFSA and taxes out of the way.
Remember to start early on your college funding search this year and use SimpleTuition as part of that process!
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