Federal Student Loans For Those Starting College

Federal Student Loans For Those Starting College

by Devora Witts

You know that the government finances peoples college education in many cases and that a considerable amount of money is destined every year for this purpose, you just would like to know how to get a share of that and avoid having to resort to private lenders that charge higher interest rates. Within this article you may find some answers to these and other questions.

Federal Student loans are not the only source of finance for college, there are also other government agencies offering loans for students and private lenders willing to provide financial assistance to those undertaking college studies. However, there is no doubt that federal student loans are the largest source of funds for students and the first choice of any student with financial needs.

However, before applying for a federal student loan you need to understand fully the implications in borrowing money from the government and what benefits and drawbacks you will need to ponder in order to decide whether a federal student loan is the right loan for you or not.

Eligibility

In order to be eligible for a federal loan you need to be a U.S. citizen, some non U.S. citizens are also eligible but you need to check with the department of education for details on how to qualify. You need to have a high school degree or proof of advance education. And most importantly, you will need to show that you have no criminal records (especially records on drug abuse) and that you are truly in need of financial assistance.

These kinds of loans are awarded in consideration of the applicant's needs. Underprivileged students are more likely to get a federal loan than those who can resort to other sources of finance or can get further aid from their family. As regards to this last factor, the EFC (Expected Family Contribution) reflects your family's ability to contribute to paying for college and will determine how much money you can request.

Procedure

Applying for a federal personal loan is rather simple. You need to fill the corresponding form (FAFSA) that can be found at the department of education site or at many other online sites which also provide additional information on how to get approved for a federal student loan.

The government agency will evaluate your eligibility and you will probably be required to submit documentation backing up your statements. Of course, the documents you may be required to submit depend on the type of loan you choose. With the exception of unsubsidized loans, you will surely need to show proof of being in need of finance.

As a final note, beware of online sites that claim to show you how to get approved for federal loans even if you can get finance from other sources and you are not so in need of assistance. They can either be just a scam waiting to rip you off or worst, they may want you to submit false information to the government agency which constitutes fraud and implies that you can be legally prosecuted.