A loan is a form of financial aid that must be repaid, with interest.
Students rely on federal government loans to finance their education.
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.