Federal Student Loans

Soon Federal Direct Student Loans will be the only game in town. Starting July 1st, 2010 all new Federal Student Loans will be Direct Loans run by the Department of Education. (White House Federal Student Loan Story) This new legislation will end the Federal Family Education Loan (FFEL) Program in which private lenders can make federal student loans. So in this article we focus on obtaining your Federal Student Loan direct from the government. You will first have to fill out a FAFSA (Free Application for Federal Student Aid) this government form is required by all persons applying for student aid and no fee can be charged for processing it. The FAFSA collects financial and other information that is used to calculate the Expected Family Contribution (EFC) and to determine the students eligibility for student loans and student grants.

Exception to FAFSA filing requirement: If the only federal student aid a dependent student wants to receive is a PLUS Loan to one of their parents, the student doesn't have to complete a FAFSA, but the parent will need to complete a loan application and promissory note. Also, the student must still meet all the usual eligibility criteria, and the parent must meet the PLUS Loan eligibility requirements. A student must submit a FAFSA, however, to receive a Graduate PLUS Loan.

Direct Student Loans

The Official Department of Education page for "Federal Direct Student Loans". Also called "The William D. Ford Federal Direct Loan Program". This is the starting point for students, parents, student aid professionals or new direct loan schools. This is the main directory page for lots of information of obtaining Federal Student Loans.

Free Application for Federal Student Aid (FAFSA)

FAFSA or the Free Application for Federal Student Aid the the first thing you need to fill out when applying for a Federal Student Loan. The application asks you about who you are, what is your financial situation, what are your school plans, etc. You might want to check the link Documents Needed Before Beginning a FAFSA before you go to the FAFSA application.

Direct Loans for Students

Direct Student Loans allows you to borrow money directly from the Federal Government for payment of tuition, room and board, transportation, etc. This DOE page tells you Where to Apply for Federal Student Loans, Where to find out how the loan pays out, What you need to do when you Graduate from college including required exit counseling and your student loan repayment plan and finally Where to find information about Your Rights and Responsibilities including information about Student Loan Cancellation and Student Loan Deferment.

Direct Plus Loans for Parents

Direct Plus Loans allow parents to borrow money from the Federal Government to pay for their dependent child's higher education. This Ed.gov page discusses: You can apply for a Plus Loan on the government site StudentLoans.gov. To apply for a Parent's Plus Loan first you must have a Parent's Pin Number go here to get a Parent's Pin Number. Then you can use your Parent's Pin Number and sign in can complete both a Master Promissory Note (MPN) and a PLUS Loan application. Parents completing a eMPN online must have their own PIN not their childs.

Stafford Loans

Stafford Loans beginning July 1, 2010 will only be made by the William D. Ford Federal Direct Loan Program. This Ed.gov page gives detailed information about:

Plus Loans

Plus Loans called Parent Loans beginning July 1, 2010 will only be made by the William D. Ford Federal Direct Loan Program. This Ed.gov page discusses How can parents get Federal Education Loans for their dependent student enrolled at least 1/2 time in at an eligible school with an eligible program. There are Plus Loans and Graduate Plus Loans. This page answers many questions like

Student Loan Facts for Students

This U.S. Education Department two page PDF called "Direct Loan Basics for Students" gives students basic information about Direct Student Loans. They answer questions such as:

Student Loan Facts for Parents

This Department of Education publication titled, "Direct Student Loan Basics for Parents", answers the following questions,

Student Loan Entrance Counseling

This DOE 23 page PDF titled "Entrance Counseling Guide for Direct Student Loan Borrowers" is required reading for many students obtaining a Federal Student Loan. This article discusses the type of Student Loans including Federal Direct Subsidized Loans, Federal Direct Unsubsidized Loans, and Direct PLUS Loans. Many questions are answered about Direct Student Loans such as

Graduate Student Loan Entrance Counseling

This 20 page Dept of Education publication titled "Direct Loan Basics & Entrance Counseling Guide for Graduate and Professional Student Direct PLUS Loan Borrowers" answers a lot of questions you might have about Graduate Plus Loans including: This publication also has Student Rights and Responsibilities Checklist near the end.

Direct Student Loan Exit Counseling

This 24 page U.S. Education Department publication called "Exit Counseling Guide for Direct Student Loan Borrowers" is used for required counseling of Student Loan Borrowers and gives you a good feel for issues you need to think about when you take out a Federal Student Loan. These issues include:

Student Loan Stories

In this section I just have links to human interest stories about obtaining and dealing with student loans. I list some good student loan stories and some student loan horror stories to give you a feel for what you need to watch out for. Obtaining a federal student loan can allow you to get a good education and obtain a good job but you have to remember that you have responsibilities to repay any Federal Student Loans that you obtain and if you default on your student loan it can have far reaching consequences.

Student Loan FAQs

The internet has answers to many Student Loan FAQ's. Some good articles include: