|America's independent, non-partisan advocate for overburdened taxpayers.||Home | Donate | RSS | Log in|
Federal Student Loans: A Summary
June 13, 2013
In anticipation of both more heated debates in Congress on whether or not to extend lower interest rates for incoming college students and a feature in this week’s Taxpayer’s Tab newsletter, I put together a quick reference to show exactly what loans are in question and what other loans are available to students.
The federal government offers many forms of financial assistance for college education, but a large portion of that help -- approximately $106 billion each year -- comes in the form of loans. While some loans are given to students based on financial need, others are issued with only the personal needs and considerations of the applicant. While some loans are given to students based on financial need, others are issued on an individualized, case-by-case basis that takes into account personal considerations of the applicant. Some students choose to forego full- or part-time employment during college and instead supplement their living expenses with loans. Though there are other options, such as private loans and Pell grants, government-backed student loans come in three forms:
For a more detailed (though wonk-ish) summary, check out this great report by the Congressional Budget Office.
Comment on this blog