Government Student Loans

Read this blog to find if your college is providing Government Student loans, which is a right of every student.

Updated by Navya B on 28th June 2018

Government Student Loans

As the name suggests, government loans are provided to students to help them fix the difficulties and support their educational needs.

  • The US government continuously has been taken steps to render students in the educational extend.

  • Many students get graduated every year and two third of this population usually tend to take loans from various organizations.

  • The government provides loans to students with lower interest rates and huge benefits.

  • There is very lengthy history connected with the loans for students, it is said that in the year of 1965 the Higher Education Act passed bills to grant loans to students for educational purposes.

  • Government Student loans can be of two types

    • Federal student loans

    • State Student Loans

Who provides the loans?

The government student loans are provided by the government organizations. It is actually divided into 2 sectors; it’s either the federal government or the state government.

All the funds and government funds are used to help a student by giving loans.

  • Federal Government: This government provides financial aid to students all over the United States.

    • The universities/Colleges which come under the federal government governance will get the benefits.

  • State Government: This government provides financial help to students only in that particular state.

    • For example, the government of California will provide financial aid to only those college students which are situated in California.

Different types of government student loans

  • Direct loans- There are 2 types of Direct loans.

    • Direct Subsidized Loan- Financial need is supposed to be shown. 

    • Direct Un-Subsidized loan- Financial need is not supposed to be shown.

  • Perkins loans- It is a kind of federal aid which has a low-interest rate around 5%.

  • Parent PLUS plans- These loans are for parents, they take loans for their children's education.

  • Federal Consolidation loans - If a student has more then one loan or financial aid, they can be consolidated.

Direct loans

  • Direct loans are one of the popular kinds of loans.

  • Direct loans are for undergraduate and graduate programs.

  • These are provided by the federal government.

  • There are two types of direct loans:

  • Subsidized Loans are provided to students with exhibit the financial need.

  • Un- Subsidized Loans are for all the students, there is no need to demonstrate guidance for financial aid.

Should the loans need to be paid back?

Yes, the loans are supposed to be paid back. The financial aid that a student receives has some payback period and some interests rates for the gross amount you take.

There are many different ways in which you can, either by attaining an internship or job after completion of the student's graduation. Or sometimes you just have to pay back the money within the given time period.

In case if a student is not able to return the money which is taken as the loan will be eliminated. The US government has something called as student loan forgiveness.

Eligibility to seek government student loans

  • A candidate who wants to attain student loans should be a citizen of the US or an eligible non-citizen of US.

  • A candidate should have a valid social security number.

  • Should have been completed higher school education.

  • Student should be enrolled in a proper graduate program.

  • Student should have minimum satisfactory marks in academics.

  • A student who is applying for loans should have cleared all the debts in the previous educational loans.

  • Students shouldn't have any criminal records.

How to apply for a Government Student Loan?

  • Get the application form based on whether it is a federal and state government Student loan.

  • Fill and complete the application form.

  • Check your emails for confirmation and assessments.

  • Review the loan documents and have the confirmation with your school/College.

  • Sign your documents carefully.

  • Submit the application and documents before the last date.

  • Last but not the least; confirm your enrolment in that particular Loan.

List of colleges which provide Government student loans

Capella University

Walden University

John Brown University

Arizona State University

Baker University

University of Saint Mary

Grantham University

Duke University

Howard University

Liberty University

How does it benefit students?

  • It will reduce the burden on students regarding their financial status.

  • It will help students to concentrate more on academics.

  • Loans are very useful for students who may not be able to pay back the financial aid.

  • Students will get free books and other necessary resources from the government.


Any college which provides Financial Aid to students is student friendly. Then you get many more benefits, loans are not as good as grants as they need to be paid back.

But for students who are really in a need that is happy to receive any kind of financial help. I Hope this blog helped in understanding better about government loan and the different types of the same.


  1) How to find out about all my student loans?

 To find out about all your student loans just follow the steps below.

  • Go to

  • Select “Financial Aid Review”

  • Read the privacy statement. You must accept these terms to use NSLDS.

  • Have your FSA ID available. You have to use the same ID.

  • If prompted, enter your name, Social Security number, your date of birth and your FSA ID.

  • Select “Submit”

Then on the screen, you find the details about all of your student loans.

  2) Are my student loans federal or private?

For this, you should talk to your Student Loan service provider, lender or debt collector. They would tell you the details about it. Take a look at your credit report and student loan billing statement there also you can find details about whether your loan is Federal Student Loans or Private Student Loans.

  3) How long does it take to approve a loan?

The entire process of application, approval and funding process would typically take about 7 days

  4) Can you get a student loan if you have a bad credit?

If you have a low credit score you won't be getting a private loan without a cosigner. So, the best option would be to apply for a Federal student loan, and it does not depend on your credit score.