Popular Federal Student Loan Programs

Federal student loan programs make up the largest supply of financing for college. The most popular types of federal student loan are the Federal Family Education Loan Program and the William D. Ford Federal Direct Loan Program. These programs are available for every student, and they offer federal student loan consolidation to simplify the repayment process after graduation. Since federal student loan consolidation provides the most flexible options and allows borrowers to lock in the lowest interest rates, these programs are better than private loans in the long run.

Most people opt for a federal student loan before turning to a private student loan, and for those who have both, it is always better to do federal student loan consolidation separately because of the better rates and terms. A federal student loan can be obtained through private banks, credit unions, or education finance companies.

The college might have specific financial institutions they recommend for federal student loan programs, or students can choose their own lender to work with. Federal student loan programs typically have very attractive rates and terms:

· Flexible credit requirements

· Interest payments may be paid by the federal government during school

· Lower interest rates

· Loan payments not required during school

· Longer repayment terms.

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