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What is a federal student loan and how can I apply for one?

The reason I ask this question is that I have no way of paying for my undergraduate education. I was able to complete my high school education because I had a scholarship. I was hoping to get a scholarship for college but I had no luck. I believe my only option would be a federal student loan. I have been advised to get a federal direct subsidized loan or navy federal student loans. However, I do not know what a subsidized student loan is or how to get one.

Megan Page

in Student Loans

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Ross Pratt on January 5, 2018

Federal student loans are the type of loans that follow the guidelines set by the U.S Department of Education. They normally have fixed and lower interest rate compared to the private student loans. There are two types of federal loans for students: federal direct subsidized loans and direct unsubsidized loans.

Direct subsidized student loans are loans that are made available to undergraduate students in need of financial assistance. Your school determines how much money you can borrow. The amount of money you borrow should not exceed your financial needs. The U.S Department of Education is responsible for paying your interest:

  • When you are in school for at least half the time
  • For the first six months after you are done with school (normally referred to as ‘grace period’) and
  • When you defer your payments

On the other hand, a direct unsubsidized loan is a loan that is made available to both undergraduate and graduate students. For this type of loan, you will not be required to demonstrate your financial need. Your school will be required to determine how much you can borrow based on other financial aids you receive and the cost of your attendance. For this type of loan, you will be required to make all the interest payments during all periods without the help of the U.S. Department of Education.

A Navy Federal Student Loan is a type of loan offered by the Navy Federal Credit Union. To qualify for this loan, you are required to:

  • Be a U.S citizen or a permanent resident of the U.S
  • Be a member of the Navy Federal Credit Union and
  • Be a legal adult in your state

Navy Federal loans are a great way to finance your education especially because you can get a subsidized loan which will not require you to make all the interest payments on your own.

To get these loans you will need to apply. You can get the application procedure on the credit unions website. Make sure you meet all the requirements before you begin the application procedure. This is important because not meeting eligibility criteria might easily make you not get the loan. Another important thing to remember is to provide truthful information about your finances and any other information requested. Failure to do so might also prevent you from getting the loan. However, if you follow all the instructions to the letter, there is no reason why you should not be approved for federal loans.

Emily Alexandera year ago

Applying for a federal student loan is a great idea if you have no way of
financing your education. The government is always ready to assist needy students by providing loans. When you are looking for a federal loan, it would be better for you to go for the subsidized loans. These are more affordable and very flexible. It might also be a good idea to get assistance from someone who has applied for the loan during your application
process. This is important because they might be able to share some tips and tricks on how to apply for the loan successfully. Another thing that will improve your chances of getting approved for the loan is applying early. Make sure your application has been submitted before the deadline. Otherwise, your application will not be reviewed.


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