Whenever you think about student loans, the first thing that should be pursued is the Federal student loan; this is because no other source of credit would offer you better terms and conditions for your loan. Though generally speaking, most Federal loans for students are referred to as Federal or Government loans, and there are quite a few to consider.

You have the Direct Student Loan, which is distributed, directly through the school. The interest rates are lower than any offered by the formal lending institutions and the repayment schedule offers a grace period of 6-9 months after the graduation takes place. This is an excellent choice when the tuition fee is very high and your finances are just about enough to cover all the other supporting costs.

Another Federal student loan, which is very popular, is the Stafford Loan or the Guaranteed Student Loan as it is commonly known. This loan comes in two types: (1) the subsidized type where the Government beard the interest cost while the student is pursuing his or her studies; and (2) the unsubsidized loan which has the interest (though much lower than marker rates) charged to the student. The repayment schedule in both the cases normally commences after six months from the graduation date.

The third Federal student loan would be the PLUS loan or the Federal Parent Loan, which is decided based upon the credit history of the parents. This loan comes with a higher rate of interest than the other two, though it is still heavily biased towards the student. This loan is also known to be easier to get than the other, since it involves another factors: the credit records of the parents.

Overall, the Federal student loan is a great choice because of the lower rates of interest, which by itself saves you a great deal of money. Another reason why you should go for the Federal loans is because there are always chances to convert it into a grant, if you are able to prove your eligibility and put together all the document they require.

Lastly, it is worth mentioning that instead of loans, you could and should look into other options such as scholarships and grants. Both these sources of finance for your education would not necessitate repayment, which means you have nothing to worry about after your graduation. Granted it takes a little more effort to find out and process these application, but given the background, the effort is well worth it.