Have you ever been in need of financial help for something that needs urgent attention? Well, as a student, I know pretty sure that you don’t need to be asked such a question for some reason.
This is because you have lots of things that you have to attend to. And these things require a specific sum of money. Things like school fees, and purchasing of textbooks, and many of them to mention but few.
Meanwhile, having been aware of all these things and understanding what students undergo. Both those dependent and those that are independent for them to clear their bills. We, STROUSAM decided to lay a helping.
Therefore, we decided to take the advantage of this opportunity, the program that the federal government introduced recently to help students, guardians and parents financially.
Moreover, the program is designed for students, guardians and parents. This fir them to participate and benefit in one way or the other to help lift them from some financial needs.
Below are other Federal Government Loan Program you can as well apply
| FEDERAL GOVERNMENT LOANS AVAILABLE | |
| Global Grant Fund Program | APPLY NOW |
| Zenka Loan | APPLY NOW |
| Zenka Loan Limit | APPLY NOW |
| Global Grant Fund Program | APPLY NOW |
| Lcredit Loan | APPLY NOW |
| CBN TIES Loan | APPLY NOW |
| Smallholder Farmers Empowerment | APPLY NOW |
| CBN Loan at 5% Interest Rate | APPLY NOW |
| 50K GEEP Loan for MSMEs from FG | APPLY NOW |
| CBN AGSMEIS Grant | APPLY NOW |
| FG MSME Survival Fund | APPLY NOW |
| NIRSAL Microfinance Loan | APPLY NOW |
I believe you might have heard about this program before and wish to know what the program is all about and how you can participate. And even benefit from the program.
Meanwhile, that’s what we are here for. This blog post came up after receiving a request from some of our readers (visitors).
The request is to provide a guide on various ways they can partake and benefit from the Federal Government Student Loan Program.
However, after going through their request accordingly, we decided to provide them with what they wanted.
But because we want to provide them with the best, most detailed & information they need to know regarding the loan. Went deeper.
What the Federal Student Loan Program is about
After going through the above write up you may want to more about the Federal Student Loan Program. Well, we are here to help you go through that. Now, carefully read what we have prepared below for you.
Let’s start,
The Federal Government Student Loan Programhttps in other words known as a Government Loan. This program provides Students, Guardians and Parents with the opportunity to obtain loans or borrow money directly from the federal government.
The money you borrowed from the government is expected to serve you a specific need academically and otherwise.
Note: the Federal Government Student Loan Program is totally different from the Youth Empowerment program.
The loan program as we mentioned earlier is designed specifically to assist students, parents or guardians financially with their academic fees or pay their college fees.
However, while applying for the Federal Government Student Loan. You need to take note of the above as the scheme in charge of the program will request active college documents which will help you qualify for the loan.
We pass this information on to ensure that you have in mind all that is involved in participating in the program.
But one thing is assured, the application process is not that difficult and stressful but we will still see you through it as far as we can.
Meanwhile, having understood what the Federal Government Student Loan Program is all about, we will like to proceed to another important core.
Therefore, we urge you not to give overlay attention for it is important that you pay more attention and go through it.
For it will help you make the right choice as you prepare for the loan.
Three Core Types of Federal Student Loans Found in the Program
They are basically three different core but similar types of Federal Government Student Loan Programs. You have to go through them all and know the one that suits your needs at the moment.
Note: while deciding for the one to apply, you should also consider applying the one your circumstance will allow you even in the future to completely clear the payment.
Direct Subsidized Loans
This particular loan is specifically for students.
As a student, before you can apply for the loan you will have to provide a demonstration of financial need as well as how the loan will be spent in some cases.
This rule was adopted by the federal regulations to ensure that those applying for the loan are serious students that need serious financial assistance.
However, this comes along with zero (No) interest charge since you are still in college as an undergraduate at least half-time, during deferment.
A period when loan payment data are temporarily postponed. In other words, you can call it during the time of grace.
The time given or postponed last for about six months after you graduate or leave before you start to make principal and interest payments.
Direct Unsubsidized Loans
This part of the federal student loan is not based on financial need. Here, your school determine the amount of loan you can obtain based on the cost of attendance and other financial assistance you receive.
The interest is charged as long as the loan last with you and it may be capitalized. This happens when unpaid interest is added to a student loan’s principal amount for a specific time during the loan period.
This tends to increase your total federal student loan cost so you have to consider it well and make a good decision before applying for the loan.
The last part for this section before we go to another important aspect of this write-up guide is Direct PLUS Loans.
Direct PLUS Loans
The federal set up this section in the Federal Government Student Loan Program to assist parents or guardians of dependent students professional or graduate students.
The PLUS loans will assist you to pay for your academic expenses up to the cost of attendance. That is the total sum of money your school estimate estimates you will need to attend one year after your other financial aid is exhausted.
In this aspect, financial need is not necessary or it’s not applicable for you to be eligible to obtain the loan.
But still, your credit check must be checked. The Federal Government Student Loan Program will have to go through your credit history and verify if you are eligible.
Borrowers who have an adverse credit history must meet the additional requirements to be eligible to obtain the loan.
That is if the agency goes through your credit history and discovers that you have a poor credit history. That is you hardly repay your loan.
You will have to provide additional information that may be requested to help you meet to qualify for the loan.
The interest is charged as long as the loan last with you and it may be capitalized. This happens when unpaid interest is added to a student loan’s principal amount for a specific time during the loan period.
This tends to increase your total federal loan cost. So you have to consider it well and make a good decision before applying for the loan.
The last part for this section before we go to another important aspect of this write-up guide is Direct PLUS Loans.
Availability of the Federal Government Student Loan Program
Of course, you would like to discover and know whether the college you wish to attend takes part or participates in the Federal Government Student Loan Programs.
There is a college search tool, hosted by the National Centre for Education Statistics.
We recommend that you use the tool as well to discover more and know if you can make any change any change.
Meanwhile, if you’re already a graduate, there is still an opportunity for you to obtain a loan other than this program. There are other programs made available for you in particular.
Federal Student Loans Program for Graduates Students
If you are already a student, you can obtain a loan from any of these federal loan schemes or programs. Or student aid Programs.
- The William D. Ford Federal Direct Loan (Direct Loan) Program
- Teacher Education Assistance for College and Higher Education (TEACH) Grant
Federal Student Loan Benefits
You have flexibility: Regardless of the source of the loan, either federal or private.
Whichever one it is all are a legal agreement between both parties (you and the loan source) and must be paid back with interest.
Meanwhile, the federal student loan generally is more flexible compared to the private student loan. Because you can still change your payment option even after the loan has been disbursed to your school.
Repayment is made based on your income:
they are some Federal Government Student Loan Programs that allow for income-based repayment plans for qualifying applicants or borrowers.
Strong Credit History (Score) is not a Must for Federal Student Loan
Compared to private student loans, federal student loans don’t require the borrower to provide a good credit score.
This is very helpful for some high school graduates who intend to proceed to college but don’t have enough time to build a strong credit score first.
A cosigner is Not Applicable
Most Federal Student does not require the borrower’s credit records except the Direct PLUS Loans. So, there will be no need to apply with a cosigner.
Qualifications for the Federal Government Student Loan Program
To apply for the loan, you must meet the qualifications depending on the type of loan you are applying for.
- Must be a citizen
- You Must have a strong credit score (Direct PLUS Loans only)
- Must be a student
- Your School must be involved
How to Apply for the Federal Student Loan
The federal student loan application is totally free. All it will take you is to complete the Free Application for Federal Student Aid (FAFSA).
While the FAFSA determines your eligibility, for the loan, the FAFSA will also determine if you can be eligible for other Federal Government Student Loan Programs like grants & work-study.
However, you need to submit the FAFSA each year you are enrolled in college to receive student aid.
Therefore, for your application to be processed quickly, you will have to fill it out online. It will only take about 3 to 5 days,
But if you mail it in a paper application, the processing will take 7 to 10 days. But whichever one, they are all the same.
Note: Submitting the FAFSA application is totally free. If you’re asked to make a payment, you are at the wrong place.
FAFSA Application Response after Submission
Once you submit your FAFSA application, the government will email you a Student Aid Report (SRA). This gives the basic information you need to know regarding your eligibility for the federal student loan.
Moreover, your school will as well go through the application and determine the amount of federal student loans and grants you may be eligible for.
The colleges you are accepted to will provide you with a financial aid offer.
This financial offer aid will explain the financial aid you qualify for which include grants, federal student loans, and work-study.
The amount of federal student loan you receive in a particular school might not be the same as other schools as its school levies differ.
If you are satisfied with the information provided in this article. If you have more questions to ask, please do so in the comment section below.
Frequently Asked Questions
What is the Federal Government Student Loan Program?
The Federal Government Student Loan Program in other words known as a Government Loan. Provides Students, Guardians and Parents with the opportunity to obtain loans or borrow money directly from the federal government.
What are the Qualifications for a federal student loan?
- Must be a citizen
- You Must have a strong credit score (Direct PLUS Loans only)
- Must be a student
- Your School must be involved
How can I pay to apply for a federal student loan?
The federal student loan application is totally free. All it will take you is to complete the Free Application for Federal Student Aid (FAFSA).
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