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The loans that are provided are the Stafford and Perkins loans regulated by the U.S. Department of Education. Nearly all students are eligible to receive federal loans (regardless of credit score or other financial issues).

Are student loans from the government?

Student loans can come from the federal government, from private sources such as a bank or financial institution, or from other organizations. Loans made by the federal government, called federal student loans, usually have more benefits than loans from banks or other private sources.

How do I know if my student loan is federal or private?

The best way of determining whether loans are federal or private is to log in to the National Student Loan Database, at www.nslds.ed.gov. The Department of Ed. makes it clear that only individual borrowers are allowed to log into this site, not third party companies or financial advisors.

How can I get free money to pay off my student loans?

If you’re not eligible for student loan grants, consider these alternatives:

  1. Apply for an Income-Driven Repayment (IDR) Plan.
  2. Pursue Public Service Loan Forgiveness (PSLF)
  3. Refinance Your Student Loans.
  4. Ask Your Employer About Repayment Assistance.
  5. Explore Loan Discharge Programs.

Is there a cost to federal student loan?

Are there any fees for federal student loans? Most federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive while enrolled in school.

How much do student loans cost a month?

The average student loan borrower pays $393 per month, according to the Federal Reserve. This includes borrowers on all repayment plans but doesn’t count those whose loans are in deferment or forbearance.

What is a reasonable amount of student loans?

The student loan payment should be limited to 8-10 percent of the gross monthly income. For example, for an average starting salary of $30,000 per year, with expected monthly income of $2,500, the monthly student loan payment using 8 percent should be no more than $200.