A federal student loan is aloan issued by the federal government that students can use to cover college costs, including tuition, fees, living expenses, textbooks, transportation and more. Federal loans come with a low fixed interest rate set by Congress each year, and they鈥檙e often the least expensive student loan option out there.
People also ask
What are federal student loans for college?
Federal student loans for college or career school are an investment in your future. If you apply for financial aid, you may be offered loans as part of your school鈥檚 financial aid offer. A loan is money you borrow and must pay back with interest.
What is the Department of Education鈥檚 student loan program?
The U.S. Department of Education鈥檚 federal student loan program is the William D. Ford Federal Direct Loan (Direct Loan) Program. Under this program, the U.S. Department of Education is your lender.
What are borrower-friendly student loans?
Federal student loans, offered through the U.S. government, have borrower-friendly features. Interest rates are relatively low and are fixed for new borrowers, so you don鈥檛 have to worry about dramatic changes in your interest costs or payment shock.
What are student loans and how do they work?
The federal government issues student loans that students can use to cover the costs associated with a higher education. Costs can include tuition, fees, living expenses, textbooks, transportation and more.