Government Student Loan Programs

If you are considering getting a student loan government programs might be of interest to you. The student loan process is necessary for most college students to go through at some point. With the rising costs of a secondary education, other types of financial aid are often not enough to get through. Therefore, you will want to learn as much information as you can about the various government student loan programs out there. Here are the basics of government student loan programs and how they can benefit you.

Government Programs

The federal government plays a large role in financing education costs for students. They have placed a priority on helping students get education because they realize the vital role that it will play for the future of our nation. Therefore, they offer some pretty reasonable student loans for almost anyone that wants one. 

The U.S. Department of Education organizes the loan process with loans from private groups. The Federal Family Education Loan Program and the Federal Direct Student Loan Program are two federal organizations that help in the administration of student loans. 


In order to qualify for a federal student loan, you have to meet a few basic requirements. For one thing, you have to be a United States citizen or an eligible resident. They will not give loans to those that are visiting or are living here illegally. You also have to be enrolled in an accredited undergraduate, post-graduate, or professional school. You have to be considered at least a "half-time" student in order to qualify for the loan program. You also must have no unresolved defaults that have reached federal status. As long as you meet those basic requirements, you will be able to get a federal student loan. You do not have to have good credit or anything else. Therefore, almost anyone can get a student loan for college if they want one.

Stafford Loans

Stafford loans are the most common type of federal government loan. The Stafford loan falls into two categories: subsidized and unsubsidized. With subsidized loans, the government will actually help bear some of the financial burden for you. Qualification for a subsidized student loan is based on financial need. You will fill out a FAFSA in order to determine your economic need. If the government determines that you do not make enough money, they will give you a subsidized loan.

A subsidized Stafford loan has two advantages over an unsubsidized loan. The interest rate on a subsidized Stafford loan is lower than an equivalent unsubsidized loan. In addition to that, the government will pay the interest payments for you while you are in school. This makes it a lot easier on you when you get out of school and have to start making payments. With an unsubsidized loan, the interest is higher and it accumulates while you are in school. Therefore, your balance when you get out of school will be much higher.


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