•Federal loans are one of the Title IV programs
Title IV refers to a section of the federal Higher Education Act of 1965, asamended, which authorizes the vast majority of federal student financialassistance programs.
•Federal loans are “guaranteed”
Federal loans are loans that are guaranteed by the federal government. Thismeans that if the student (or other borrower) defaults on the loan (fails topay it back), the government will reimburse the lender.
•Federal loans are a good deal
They generally have lower interest rates and better terms that other loans.
•Some loans are subsidized
Means that the government pays the interest while the student is in school.
•There are 3 types of federal loans