Federal Student Aid Loans

The Federal Student Aid Loans could help you continue your studies with lesser interest rates and longer payment periods. The FSA is an office of the US Department of Education. It is considered as one of the largest providers of student financial aid in the US.


The student assistance is provided in the form of grants, loans, and work-study funds. The FSA is responsible for the distribution and processing of the FAFSA.


The Free Application for Federal Student Aid is the qualifying form used by any student interested to join the program.



Core mission

The Federal Student Aid program ensures that any American eligible for the financial assistance may be given the opportunity to obtain an education beyond high school by grants, loans, or work-study programs funded by the FSA.


If you apply for financial aid, you may be offered a loan as part of your school’s financial aid offer. The loan is the money you borrow that should be paid back by you with interest.



You must understand the terms and conditions of the loan. Please visit https://studentaid.ed.gov/sa/types/loans#types



The Federal student loan comes from the federal government or from a private source, such as the bank or a financial institution.


It gives lower interest rates and more flexible repayment options than loans from banks or other private sources. Normally, you can avail of the 4 types of direct loans


  • Direct Subsidized Loans
  • Direct Unsubsidized Loans
  • Direct Plus Loans
  • Direct Consolidation Loans



Read more here https://studentaid.ed.gov/sa/types/loans/federal-vs-private



Read more about the types of loans https://studentaid.ed.gov/sa/types/loans




Major Federal student aid programs

  • Pell Grants
  • Federal Supplemental Educational Opportunity Grants
  • Federal Work-Study Program
  • Federal Stafford Loans
  • State Student Incentive Grants
  • Federal Plus Loans
  • Federal Perkins Loan Program
  • Federal Family Education Loan Program
  • Federal Direct Subsidized Loan
  • Federal Direct Unsubsidized Loan
  • Parent Plus Loan
  • Graduate Plus Loan



Education tax benefits

  • American Opportunity Tax Credit
  • Lifetime Learning Tax Credit



There are two types of Federal Student Aid Loans, namely the Direct Loan Program and the Federal Perkins Loans.



Direct Loan Program

Undergraduate and graduate students have direct access to this Direct Loan Program. The loan could be availed only with participating postsecondary schools that had borrowed funds from the US Treasury.


The loans could be subsidized or unsubsidized. This Direct Loan Program also provides loans for parents, graduates, or professional degree students. The Direct Loan Program includes consolidation loans.


Consolidation loans allow borrowers to combine their Direct Loan Program with their federal education loans. As of July 1, 2010, all new Stafford, PLUS, and Consolidation Loans are now under the direct supervision of the US Department of Education through the Direct Loan Program.



Federal Perkins Loans

Undergraduate, graduate, and professional students can access the Federal Perkins Loans through participating schools only.


Students should demonstrate an excessive financial need to be able to apply for this loan. The number and amount of awards largely depend on the need of the students as well as the school’s funding availability.



How much money can you borrow?

If you are an undergraduate student, you can borrow up to $5,500 per year under the Perkins Loans depending on the financial need demonstrated, the funding availability, and the amount of other aids you received.


You can also borrow from $5,500 up to $12,500 per year under the Direct Subsidized Loans and the Direct Unsubsidized Loans depending on some factors of consideration.


If you are an undergraduate student, you can borrow up to $8,000 per year under the Perkins Loans and up to $20,500 per year under the Direct Unsubsidized Loans.


For the remainder of your college costs not covered by other financial aid can be obtained through the Direct Plus Loan. However, a credit check is required for the applicants of the Direct Plus Loan.


If you are a parent of a dependent undergraduate student, you can cover the remainder of your child’s college costs through the parent Plus Loan.


You can download the free application for Federal Student Aid (FAFSA) to receive the Federal grant, loan, or work-study funding here https://studentaid.ed.gov/sa/fafsa






Contact Information of the Federal Work-Study Aid

Federal Student Aid Information Center (FSAIC)

Telephone: 1 800 433 3243

Telephone for the hearing impaired: 1 800 730 8913

Locations without access to 800 numbers: 319 337 5665


You can ask about the Federal Student Aid program directly to the FSA office. You can email or call the FSA for your general or technical questions here https://studentaid.ed.gov/sa/contact

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