Affordable Education for Everyone


Federal Student Loan

These types of loans help students all over America to gain access to resources and post-secondary school programs that would otherwise be unavailable as a result of monetary restrictions. However, one caveat with these types of loans is that they must be paid back at some point. Upwards of 20 million students attend some form of post-secondary education and with the advent of the 2008 economic recession it has become increasingly difficult for middle-class America to send students to school.

Nonetheless, a great number of students so fervently seek post-secondary education because of the results in terms of future wages and job security once a student has entered the job market.

Federal Student Loans To Students

Prior to the 1960s, the federal government of the United States of America would issue loans to specific groups of qualifying students and typically only for certain disciplines. However, after the 1960s, the government broadened the criteria and those who could qualify for student loans. One of the most important conditions to such federal loans to students is that the resources can only be utilized for tuition or items directly related to the continuity of post-secondary education. Some of the usual items related to education can be living quarters, sustenance, child-care, and a number of other items that are directly or indirectly related to the completion of some form of post-secondary education.

Additionally, there are some discrepancies in the volume or proportion of money that the federal government will issue to different students. Perhaps the largest distinction is between undergraduate and graduate students. Graduate students will receive more money because of the traditional nature of their studies involving much more resource-intensive research and travel costs.

Federal Student Loans To Parents

Typically, loans are granted to students with special provisions like a strict limit to the amount of money that one is able to borrow. Additionally, there will sometimes be provisions that allow students an extended time period to begin repayment of the loan. However, loans to parents are quite a bit different. Parents of students that receive loans in this context are able to borrow much larger sums of money. The caveat to being able to borrow much larger sums of money is that there is absolutely no grace period or provision allowing a buffer of time to begin repayment.


Parents who borrow money in this vein must being repayments immediately. There are some new forms of loans that allow for a blend of the provisions between student and parent loans, which includes more favorable grace periods and interest rates for students.


The typical classification for entering into the first phases of repayment is what is known as standard repayment. This classification of repayment essentially enables the borrower a period of approximately 10 years to payback the full sum of the loan. The company that is entrusted with facilitating repayment between the government and the student and/or parent(s) is also responsible for splitting the bill into equal payments over the course of a calendar year. Nonetheless, some of the loans granted will not be as significant in volume as other loans, which means that it may not take an entire decade to pay the balance owed to the federal government. It all depends on the financial needs of the parents and the student.