Many students rely on federal government loans to finance their educations.
These loans have low interest rates and do not require credit checks or collateral. Student loans also provide a variety of deferment options and extended repayment terms. These loans are guaranteed against default by the federal government. To receive a subsidized Stafford Loan, you must be able to demonstrate financial need. With the unsubsidized Stafford loan, you can defer the payments until after graduation by capitalizing the interest.