The Federal Student Loan Program, which can also be called a government loan due to its governmental assistance on the Federal Student Loan Program, and enables both students & parents/guardians to borrow funds for college & institutional education directly from governmental authorities.
Moreover, this article explains all regarding the Federal Student Loan Program, what it is, how we can possibly benefit from this loan, how to apply for federal student loans, and other related topics relating to the Federal Student Loan Program.
Federal Student Loan Program – Details About the Loan
What do you think a Federal Student Loan is? As earlier mentioned A Federal Student Loan can also be known as a government loan, and it allows students & parents/ guardians to borrow funds for college & institutional financial activities, and this loan will be directly offered by the Federal government.
Federal loans come majorly in two types, consider the below details regarding types of federal student loans. To help inform others about the Federal Student Loan Program, feel free to share this post on your feeds & social media platforms.
See the below table, which contains some of the intervention programs from the federal government, to find out more about the available federal government loans below, click on the APPLY NOW link, and also apply if you want.
|FEDERAL GOVERNMENT LOANS AVAILABLE|
|Nigeria Youth Investment Fund||APPLY NOW|
|CBN TIES Grant||APPLY NOW|
|CBN Agsmeis||APPLY NOW|
|Federal Government Grant for Students||APPLY NOW|
|FG NALDA Volunteer Programme||APPLY NOW|
|N250,000 NDE Loan||APPLY NOW|
|SEIFAC Loan||APPLY NOW|
|World Bank $750 Million Grant||APPLY NOW|
|CBN Loan at 5% Interest Rate||APPLY NOW|
|Federal Mortgage Loan||APPLY NOW|
|CBN AGSMEIS Grant||APPLY NOW|
|FG MSME Survival Fund||APPLY NOW|
|NIRSAL Microfinance Loan||APPLY NOW|
These loans listed above, are meant for business owners, families, and students. Staying without a business or workplace can be a challenging condition for you, even when the economy in Nigeria affects everyone financially.
Types of Federal Student Loans Explained
The types of Federal Student Loans include the following:
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Direct PLUS Loans
These three types of Federal Student Loans are currently accessible via the Federal Direct Loan Program. Due to the fact that these Federal Student Loans provide benefits that vary compared to private student loans, we think that you should consider them first before any other loans you might come across.
See the detailed aspect of these types of Federal Student Loans listed above in the following section below:
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Direct Subsidized Loans Under the Federal Student Loan Program
Before applying for Direct Subsidized loans, you must be a student with a demonstrated financial need, as mentioned by the Federal regulations regarding the loans.
The loans have no interest charge on them when an undergraduate student is in college at least half-time during the period when the loan payments will be temporarily postponed.
Or even during grace – which is a period that’s normally six months after graduating from college, and then you’ll start making principal & interest payments on the loan amount.
Direct Unsubsidized Loans Under the Federal Student Loan Program
What do you think these kinds of loans are? Actually, they are federal student loans that are not offered based on financial needs. Instead, your college or institution is responsible, for where its needs to determine the amount you as a student can borrow.
And such a borrowing scheme would be according to the cost of attendance & other financial aid that you’ll receive will academic activities are on within the college or institution.
In these Direct Unsubsidized Loans, students are charged interest during all the periods, and can also be capitalized, and in most times during the loan period – which can possibly increase the student’s total federal loan cost.
Direct PLUS Loans Under the Federal Student Loan Program
These kinds of loans relate to Unsubsidized Federal Loans for parents of dependent students, including graduate/professional students. Loans like PLUS loans can assist in paying for education expenses that will be about the cost of attendance immediately after your other financial aid has ended.
Eligibility to apply for this loan does not depend on Financial need, instead, it’s based on a credit check, which is needed. Borrowers with an adverse credit history must reach up to an additional requirement in order to qualify.
Moreover, students are charged interest during all the periods, and can also be capitalized, and most times during the loan period – which can possibly increase the student’s total federal loan cost.
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Relevant Benefits of the Federal Student Loan Program
The Federal Student Loan Program possesses interesting benefits that might convince you into applying for Federal Student Loans or even join the Federal Student Loan Program. Some of these interesting benefits are explained below:
Despite the fact that all student loans including federal & private concern a legal agreement & must be paid back with an interest, Federal Student Loans still insist on offering more options that are flexible compared to private student loans.
For instance, via Federal Student Loans, the student can possibly change their repayment details even after the borrowed loans have already been disbursed to the student’s college or institution.
Borrower’s Payments Based on Income
Most Federal Student Loans offer accessibility for income-based repayment plans to qualify borrowers that can possibly capitalize payments in accordance with the borrower’s income & background size.
No Strong Credit History is Needed to Apply for Federal Student Loans
Unlike private student loans, the Federal Student Loan Program does not need the borrower to have a strong credit history before he/she can apply for Federal Student Loans.
And such loans can be very helpful to recent high school graduates that tends to attend college or higher institution but have less time to build their credit history.
Borrower’s Cosigner Not Needed
Unlike Direct PLUS Loans, in some Federal Student loans, the borrower’s credit is not to be considered, which makes it unnecessary to apply via a cosigner.
With these interesting benefits, you probably like to apply for the Federal Student Loan Program and get Federal student loans that can assist your academic expenses and other financial aid within the college or institution.
See the following section below, and find out guides that can help you apply for Federal Student Loans for college successfully. To remind you, don’t forget to share this post for others to benefit.
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How to Apply for Federal Student Loans via the Federal Student Loan Program
The Federal Student Loan Program has offered access to interested students & parents/guardians to freely apply for Federal Student loans, and assist with their child’s academic expenses.
Currently, you can possibly apply for Federal Student Loans by completing the Free Application for Federal Student Aid (FAFSA), and you’re to apply on separate terms to each lender you want to work with if you show interest in private loans.
Once you complete the FAFSA, it qualifies you for both student loans & other types of Federal Financial Aid. Based on your financial needs, you can possibly qualify for Federal grants, which include the Pell Grant – it’s an opportunity that can cover your educational cost without repayments.
If you’re immensely in need of money to the point of borrowing, Federal loans are the best option, and it has low-interest rates & more flexibility in their repayment options compared to private loans.
In order to determine eligibility for Federal student loans, the FAFSA also evaluates if you can qualify for other federal student aid such as grants & work-study. You’re to submit the FAFSA yearly once you’re admitted into college in order to get Federal Student Aid.
In what ways can you actually file the FAFSA? The easiest & fastest ways we can tell that can help in filing the FAFSA & check your eligibility for Federal Student loans involves online filing methods.
Once you perform the filing online, your application will be processed just within 3 to 5 working days. Another method is by mailing in a paper application, but such will be processed within 7 – 10 days.
If you’re to submit the FAFSA online, it is totally free, with no charges attached. If you are charged to submit the FAFSA, do not think twice, be aware that you’re in the wrong place to submit the FAFSA.
So, once you submit the FAFSA, what comes next? See the following section below, and find out what happens next after you’ve submitted the FAFSA.
What Comes Next After Submitting the FAFSA
After you’ve submitted the FAFSA, the government will send your an SA Report (SAR), which will basically inform you about your eligibility for Federal Student Aid.
Also, the colleges listed on your FAFSA will have full access to this information. The same information will be used to determine the amount of Federal Student Loans, Grants, and Work-study that you tend to qualify for.
Meanwhile, the colleges you’re gained admission into will send you a financial aid offer that bears details of the financial aid you’ll be eligible to receive, and this includes Federal student aid, grants, and work-study.
Note: The amount of Federal aid you get from each school can possibly differ, it’s just similar to the cost of attending each school which also differs.
Moreover, to find out available federal student loans, which you might be interested to take part in the Federal student aid programs, CLICK HERE – a college search tool, which is hosted by the National Center of Education Statistics.
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Frequently Asked Questions about Federal Student Loan Program
How quickly can you get a Federal Student Loan?
It takes within 1 to 3 weeks to fully get a federal student loan disbursed to your account, and about 2 to 10 weeks to get a private student loan disbursed to your account. So, preferably, we recommend you go apply for a federal student loan.
How much can I get from FAFSA?
The amount of money you can get from FAFSA® depends on your EFC (Expected Financial Contribution). FAFSA® can also make you eligible for student loans of about $12,500 yearly.
Is it late to get a federal student loan?
If you intend to go to college from 2023 – till the academic year 2023-2024, the FAFSA student loans deadline is currently June 30, 2024. On the other hand, some colleges & institutions have their own deadlines, including state deadlines which vary, with others that might be earlier.
Will FAFSA cover my tuition fees?
The financial aid given according to the FAFSA is to be used to pay the college’s full cost of attendance, and this includes tuition and other fees. If it is possible for student financial aid to cover full tuition & fees, in practice, it will reduce.
For further updates regarding Federal Student Loan Program, feel free to visit this page next time on Start Easy Crypto, and don’t forget to share & leave a comment below to indicate your opinion about this article.
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