Department of Education Loans

Department of Education loans are designed to help students who want to pursue college programs. As college tuition has considerably increased in the recent years, these loans are an effort by the government to make higher studies accessible to students regardless of their financial status. Students with financial need can easily obtain these funds and pursue their educational goals without any problem. The terms and conditions of these loans are very simple. This is why students can greatly benefit from them.
 

Types of Dept of Education Loans
Department of Education student loans include a wide array of loan programs. Federal Stafford loans, Perkins and Plus loans are some of the funds offered by the Department Education loan programs. The rate of interest in these loan programs is fixed. Most of these loans are granted to students who demonstrate financial need. Students can return the amount that they get through these programs in 6 to 9 months after graduating. Stafford loans are most widely available program for the students. These loans can be subsidized or unsubsidized. In case of subsidized loans, the borrower does not have to pay the interest on the loans while being enrolled in a program. In unsubsidized loans, on the other hand, students have to manage the repayment on their own. Plus loans are the loan programs that are meant for the parents of the students. These financial aid programs are Department of Education loan services that offer funds on low rate of interest and easy repayment process.
 
Department of Education Loans vs. Private Loans
Compared to the private student loans, Department of Education loans have a lower rate of interest. This is why these loans always make a better option for the needy students who want to pursue college programs. These loans are granted to students on the basis of financial need while the private loans are based on credit score of a borrower. However, the federal student loans do not cover the complete cost of education. Private student loans, on the other hand, allow students to have funds for their complete cost of studies.
 
How to Apply for Department of Education Federal Loans?
To apply for such loans, students need to complete the FAFSA. This form enables the Dept of Education to assess the financial need of students. Based on the information provided by the borrower, Education Department determines the kind of financial aid one is eligible for.
 
Benefits of Dept of Education Student Loans
Department of Education loans allow students to get the much needed fund for college. The low rate of interest and the easy repayment plans of these loan programs enable the borrowers to manage the repayment of these loans without any problem. Thus they can pursue their educational programs without worrying about the cost. They can stay focused on their studies which is imperative to complete college programs successfully and find rewarding career opportunities, which are not possible without college degrees.

The U.S. department of Education is one of the largest providers of student loans in the country. Federal Student Aid, a part of the U.S. Department of Education, employs almost 1,200 employees who are constantly working to make college education a possibility for more than 15 million students looking for financial aid for higher or career education. Each year the Dept. of Education disperses more than $150 billion in federal grants, loans, and work-study.

The Department of Education student loans are the cheapest student loans available, since they are subsidized and are given purely to facilitate the academic ambitions of the students.

Frequently Asked Question(s)

Q:How can I apply for department of education student loans?

A:Students interested in applying for the department of education student loans need to fill out the FAFSA form before the appointed deadline. Student's eligibility for financial aid is determined with the help of a formula devised by members of Congress. The formula which is commonly known as the EFC (Estimated Family Contribution) considers a number factors. The FAFSA form is available online and students are requested to quote the correct federal school code when applying for financial aid.

Q:What are some of the benefits of dept of education student loan?

A:Dept of education student loans have various benefits for the students. Some of these include the low interest rates, that enable the students repay the loan easily and without much trouble. These loans also offer very easy repayment options that the borrowers can choose from, thus allowing the students to focus on their studies rather than worrying about loan repayment.

Q:Do I have to fill out a FAFSA form at the department of education loan servicing?

A:A FAFSA form is available online at fafsa.ed.gov. It is to be filled out and submitted when applying for federal student loans. This form is used to collect financial data about the applicant, to determine the need for aid and eligibility for federal aid programs. The form is completely free of cost.

Q:Department of education student loan consolidation-is it possible and can I still apply? (Make it a paragraph)

A:Just this year the U.S. Department of Education (ED) offered borrowers the Special Direct Consolidation Loan facility. Anyone with a student loan from ED or FFEL or at least one commercially-held FFEL loan can make use of this facility. Special Direct Consolidation Loans will now assist borrowers in better managing their debt by being serviced by the same entity, which means getting one bill and making one unified payment.The deadline for applying for a Special Consolidation Loan was June 30, 2012.

Q:Can you brief me about department of education and student loans?

A:Department of education is concerned with assisting those pursuing higher education with loans that can make education more affordable and accessible. The loans given by the government have easy process of application and easy terms and conditions. They consider the financial needs of the students after evaluating it from the FAFSA application and then grant loans accordingly.

Q:As I was reading about the department of education loans, I came across a list of popular federal student loans. Can you a name a few?

A:There are a few popular federal student loans one can apply for. These loans are need based and have a low interest rate. Some of the most popular federal loans include the following: Perkins loan, Stafford loan, Graduate PLUS loan, and Parent PLUS loan. These can be applied for by simply filling out a FAFSA form online.

Q:What kind of information will I have to provide to apply for department of education student loan?

A:The US department of education offers loans to students at college and university level. All those in need of monetary assistance must fill out a FAFSA form online. Information such as income level, family income, job status, tax payments, social security number, and credit status is collected through a FAFSA form.

Q:Is there any federal dept of education student loans?

A:Yes, there is a federally run department that aims at providing students loans and other aid to students all across the nation. In today's economy, costs have become an issue for many students wanting to enroll in college. Federal student loans are dispersed to such individuals who need monetary assistance. A FAFSA form must be filled out to apply for federal loans.

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