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About Federal Student Loans

By Myloer Jamery

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The student loan program that has been set up by the federal government is meant to make getting a post-secondary education easier for students, while giving these students plenty of time to get a job before asking for repayment. These loans are made directly to the student and there is no payment required as long as the student is attending school at half time status. If the student drops below half time status or graduates completely, the account immediately goes into its 6 month grace period.

The student has this 6 month period to either enroll in more classes to get back up to half time status or begin repaying the loan. This grace period can only be implemented once, so if a student drops below half time status once again, he or she will have to begin repayment immediately.

These loans have a very small annual limit that can be taken out, as the federal government does not want students to get into too much financial difficulty. Freshmen students can borrow up to $5,500 per year, sophomores can borrow $6,500, and juniors and seniors can borrow $7,500 per year.

Students who are living on their own can borrow a little bit more to help out with their living expenses, however, so they can focus on their studies without worrying about where their rent money will come from. The government also takes care of the interest payments while the student is in school, so the amount borrowed is the amount that will be due upon graduation with interest starting from that date.

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