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Do you know anything about a department of education student loan?

I need to find information on student loans. What is a department of education student loan? How can I get such a loan and what is the overall cost of repayment? Please explain to me the difference between subsidized and unsubsidized loans. I want to know what it takes to get the best deal when going for a student loan. I keep being told, “apply for student loan”, so I need the best deal possible. Tell me something about the federal student loan interest rate that I should expect.

Frank Nichols

in Student Loans

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Daniel King on June 11, 2018

A student loan from the department of education is a federal loan given to students to help them pursue their higher education studies. It is one of the two types of loans available to students, the other being private student loans. The latter are offered by non-state actors that also support student learning. There are a number of important things you can learn about federal loans by visiting Federal Student Aid.  Here is a summary of what is involved.

  1. There are subsidized and unsubsidized loans available to students. Subsidized loans don’t accrue interest while a student is still in school. This ensures that the student is not burdened with too much debt by the end of his studies. Unsubsidized loans, on the other hand, begin accruing interest from the time it is given, thus rendering them more expensive to repay. Needy students easily qualify for federally subsidized loans.
  2. To apply for a student loan, one has to begin by filling in the Free Application for Student Aid (FAFSA) forms that are readily available at www.FAFSA.gov. To complete the form you need your social security number, alien registration for non-US citizens, income tax returns and records of other untaxed earnings, bank statements and investment records if you have them, and an FSA ID to sign in. You can easily create an FSA ID by clicking on the Federal Student Aid link.
  3. Federal student loans are less expensive than private loans. That is because they accrue lower interest rates. Federal student loan interest rates in 2017 were set at between 3.5% and 7% depending on the loan given. Moreover, these rates are fixed compared to the varying rates on private loans which go as high as 18% in some cases. Interest on federal loans is tax deductible while those on private loans may not be. Repayment may be pegged on the income of the loaned individual rather than on the amount of the loan itself for federal loans. This is meant to ensure ease and efficiency of repayment.  
  4. Federal loans are subject to repayment rescheduling whenever you run into financial trouble. Such deferments are rarely part of the deal when you are dealing with the private loans. Moreover, you can even get loan forgiveness in certain extreme circumstances. That is something you cannot hope for with a private loan. Private loan organizations are mostly profit driven. 


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