Federal Student Loans - an introduction
Federal student loans are educational loans made to students and parents of students. The Higher Education Act of 1965 (as currently amended) authorizes these programs in the United States as administered by the U.S. Department of Education.
Within the Department of Education, The Office of Federal Student Aid, (or simply, Federal Student Aid) oversees and administers these Federal Financial Aid programs.
Some of the Federal Student Aid's activities:
- Administration and Processing of FAFSA - the Free Application for Federal Student Aid
- Disbursement of federal loans
- Enforcement of Financial Aid regulations
- Servicing and management of a $400 billion student loan portfolio
Types of Federal Student Loans
Federal Student loans are generally one of four types:
- Federal Perkins Loans - loans to students, lender is your school.
- Federal Stafford Loans - loans to students, lender is a financial institution.
- PLUS loans / Graduate PLUS loans - loans to Parents of undergraduate students or directly to Graduate students, lender is financial institution or U.S. Dept. of Education.
- Consolidation Loans - loans to students or parents to combine several loans into one.
Click on any of the categories to read more.