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Federal student loan

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AnalyticsTrade Team Last updated on 26 Apr 2023

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Federal Student Loan

A federal student loan is a loan provided by the federal government to help students pay for college tuition, books, and other educational expenses. The loans are funded by the U.S. Department of Education and are available to both undergraduate and graduate students. Federal student loans have fixed interest rates and offer flexible repayment options, making them an attractive option for many students.

History of Federal Student Loans

Federal student loans have been around since the 1950s, when the National Defense Education Act (NDEA) was passed. This act provided loans to students who were studying science, math, and foreign languages. In 1965, the Higher Education Act (HEA) was passed, which expanded the availability of student loans to all students, regardless of their field of study. Since then, the federal government has continued to expand and improve the student loan program, making it easier for students to access the funds they need to pursue higher education.

Comparison of Federal Student Loan Options

Loan Type Interest Rate Repayment Options
Direct Subsidized Loans Fixed at 5.05% Standard, Extended, Graduated, Income-Based, Pay As You Earn, Revised Pay As You Earn, and Income-Contingent
Direct Unsubsidized Loans Fixed at 5.05% Standard, Extended, Graduated, Income-Based, Pay As You Earn, Revised Pay As You Earn, and Income-Contingent
Direct PLUS Loans Fixed at 7.60% Standard, Extended, Graduated, Income-Based, Pay As You Earn, Revised Pay As You Earn, and Income-Contingent

Summary

Federal student loans are an attractive option for many students, as they offer fixed interest rates and flexible repayment options. The loans are funded by the U.S. Department of Education and have been available since the 1950s. For more information about federal student loans, visit the U.S. Department of Education website or contact your school’s financial aid office.

See Also

  • Direct Subsidized Loans
  • Direct Unsubsidized Loans
  • Direct PLUS Loans
  • National Defense Education Act (NDEA)
  • Higher Education Act (HEA)
  • Student Loan Forgiveness
  • Student Loan Consolidation
  • Student Loan Refinancing
  • Student Loan Repayment Plans
  • Student Loan Default

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