Student Loans and the US Department of Education
In order to get the best possible interest rate on your federal student loan, you should be able to prove that you have demonstrated financial need. The federal government has regulations that determine if you qualify for this type of loan. The good news is that there are no interest payments on these loans while you are in school, deferring the loan for up to six months after you graduate. Depending on the school you are attending, you may be eligible to borrow a certain amount of federal aid.
Unlike many other types of student loans, federal loans do not require you to have excellent credit. This is especially helpful if you are a recent high school graduate, having not yet had time to build up a credit history. Direct PLUS Loans do not consider your credit history. If you don’t have a cosigner, you can still receive a federal loan. Using a servicer to manage your federal student loan will allow you to rebuild your credit history.
This lawsuit has been referred to as Sweet v. DeVos, but it was renamed when Betsy DeVos left the department. Hopefully this will provide answers and certainty to borrowers. The Education Dept. is taking targeted steps to fix the student loan system. The government wants to eliminate interest capitalization, expand student loan relief options for people with disabilities, and simplify the relief application process for all borrowers.