Very few students have the means to fund their entire college education. Even after receiving grants or scholarships, many still require additional funds to cover the remainder of their schooling expenses. This is why the majority of students take out loans to cover the total cost of tuition.
The least expensive lender with the best interest rates and terms is through the federal government. The first thing a federal student loan should do is file a Free Application for Federal Student Aid (FAFSA). This is the most important step because it allows students access to Perkins and Stafford Loans. Students that fail toe file a FAFSA remove themselves from receiving almost all forms of federal aid.
Two federally based loans that require no collateral or credit checks are Perkins and Stafford loans. These types of government loans have excellent repayment, deferment plans, allowing students a flexible repayment schedule and low interest rates.
Two sites that provide excellent information on federal student loans are the FAFSA website and the Federal Direct Loan website.
