Federal student loans are provided to students to finance their higher education. They are broadly classified into two - federal student loans given to students directly and federal student loans given to parents. The terms and conditions for these loans vary and the amount granted changes as per federal policies.

Federal student loans, also known as Stafford loans, are given directly to students. They are intended for college students who need financial support. They are further classified as either Federal Family Education Loan Program (FFELP) or Federal Direct Student Loan Program (FDSLP) loans. Private lenders provide FFELP and these loans are guaranteed by the federal government. The US government provides FDSLP.

Federal student loans made to students directly are either subsidized or unsubsidized depending on the financial position of the student. The main difference between these loans is that in subsidized the interest is paid by the government. On completion, the student needs to repay only the loan amount. In unsubsidized loans, the loan interest is accumulated with the principal amount and the student has to pay the entire amount after graduation. Both of these loans are insured by the US Department of Education and are given either directly or through agencies such as banks or other financial providers. They have grace periods and need to be paid only after graduation.

On the other side, the federal student loans for parents are meant to assist the parents in the payment of various course fees. This type of loan is often referred to as PLUS (Parent Loans for Undergraduate Students) loans. Here, parents are responsible for the repayment of the loan and there is no grace period. PLUS loans are provided by private lenders as well as by the government.



Federal Student Loans provides detailed information on Student Loans, Federal Student Loans, College Student Loans, Private Student Loans and more. Federal Student Loans is affiliated with Private School Loans.

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