Federal Student Loans

Federal student loans are money the government lends directly to students and parents to pay for college, career school, or graduate study. Because so many households carry this debt, the rules around borrowing, repaying, and getting relief shape financial decisions for years after graduation. Congress and the Department of Education set the terms, but borrowers have real choices within that system.

Borrowing and applying. Getting a federal loan starts with a standard application process, and how much you can borrow depends on your year in school, dependency status, and program type. These rules are covered in Applying for Federal Student Aid and Federal Student Loans: A Guide to Borrowing Limits and Rules.

Repayment and adjusting your plan. Borrowers aren’t locked into one repayment structure forever; income, job changes, and financial hardship can all be reasons to switch plans or combine loans into one, as explained in How to Change Your Student Loan Repayment Plan and Student Loan Consolidation: Free Federal Program Pros & Cons. Interest paid on these loans can also affect your taxes, a topic covered in the guide to Form 1098-E.

When repayment goes wrong, and paths out. Missing payments can trigger serious federal collection powers, described in When the Government Takes Your Paycheck, but borrowers in default have ways back into good standing, outlined in Options for Getting Out of Student Loan Default. Some borrowers may also qualify for full or partial forgiveness, covered in Student Loan Cancellation: Your Options.