There are two types of Federal Student Loan programs, one the Direct Federal Loan Program and the other Federal Family Education Loan Program. Both of them are key components of successful college financial aid strategy.

Federal Student loans should have to be a very first step they take in the financial aid process:

• U.S. Department of Education administrates the Direct Federal Loan Program and also acts as lender for the Program.
• The Federal Family Education Loan Program (FFELP) consists of the Stafford Loan, PLUS Loans and Federal Consolidation Loan. This program allows federal loans to be availed through private lenders such as Sallie Mae and Nelnet. Because of private lenders more student gets access to federal loans.

Federal Students Loans are guaranteed by the government that mean if you default on any loan repayment then the government will back the lender financially for the loss.

Best thing about federal loans is that they are affordable and almost everyone qualifies for some aid.

Here are some advantages of the Federal Student loans that make it apart from private loans and other loan types.