Federal Student Aid and Federal Student Loans: Help to Pay for College

Federal student loans
Even if you expect you may also need a private student loan, .you should start by applying for federal loans like these.

Stafford loans
Regulated government-to-student loans

PLUS loans
Education loans to parents of college students

Perkins loans
Education loans to families with exceptional needs

Why are federal loans less expensive?
Federal student loans are guaranteed by the government; this reduces a lending bank's risk, so the loan's interest rates are typically lower. In addition, federal financial aid generally has lower fees and appealing payment terms. To learn more about federal student loans, visit www.fafsa.ed.gov. It's wise to research state-funded student aid as well. Check with both your home state and, if applicable, the state where you plan to attend college. Turning in your FAFSA on time is critical to maximize your student aid eligibility. If you need help, companies like FAFSA.com help make filing fast and easy for a service fee.

It may take more than federal loans to pay for college
Since they're based on the government's determination of your family's financial needs, federal student loans strictly limit how much you can borrow over a year and over your lifetime. The good news is, the government recently increased federal student loan limits. However, it's possible that federal loans still may not be enough to cover your expected education-related expenses. That's when private student loans can fill in the gaps.

Astrive Student Loans are private student loans marketed by Union Federal Savings Bank, Member FDIC and Equal Opportunity Lender. Astrive is a federally registered trademark of The First Marblehead Corporation, used by Union Federal Savings Bank.

1 National Association of Student Financial Aid Administrators, 2008.