Need loans to pay for school? Find out why subsidized government loans are your best option.

Still Need Money for Education? Learn About the Best Federal Student Loans

If you don’t qualify for grants or don’t have enough grant money to cover your education costs, you can get safe student loans from the federal government. You’ll find out how much you’re eligible to borrow when you get your FAFSA results.

Federal student loans are the best college loans for the following reasons:

  • Federal student aid interest rates are fixed, which means the rates cannot go up over time.
  • They can be subsidized, which means the government covers some of the federal student loan interest rate.
  • You may be able to consolidate or refinance federal loans if you’re having trouble repaying.
  • You won’t need to repay them until you leave school.

The two main types of federal student loans are direct subsidized loans and direct unsubsidized loans. Federal direct subsidized loans are available to undergraduate students who demonstrate financial need. The government will cover the interest on these loans while you’re enrolled in school and in certain other situations.

Federal direct unsubsidized loans are available to undergraduate and graduate students. They are not based on financial need, so more people qualify. You can qualify for up to $12,500 in federal student loans as an undergraduate. Meanwhile, graduate students can borrow up to $20,500 in graduate unsubsidized loans.


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