Borrowing to pay for your education is an important decision that only you and your family can make. Higher education is expensive but worth the investment of time, effort, and money. Research shows that higher education can increase what an individual earns over a lifetime.

Keep in mind that any money you borrow will have to be paid back. A student loan is a financial obligation that won't go away until it is paid in full.

Here is what you need to know to decide if a federal student loan is for you.

The Federal Family Education Loan Program (FFELP)
The FFELP is the top source of financial aid in the U.S., providing almost one half of all aid awarded each year.

Federal Stafford loans and Federal PLUS loans are a good deal if you decide to borrow to pay for your education.

Loans offered through the FFELP have several advantages, including the following:

• Interest rates are low
• Students are not required to make payments while enrolled in school on at least a half-time basis
• Loans are available to both students and parents
• Application and approval processes are easy

How it works
Students and parents receive loans from banks, credit unions, and other lending institutions. The federal government backs the loans and pays interest on some loans while the student is still in school on at least a half-time basis.

TG helps families, students, schools, and lenders by providing financial aid information and services. TG also helps the government manage the FFELP as a public nonprofit guarantor, or insurer, of loans.

Explore your options
Remember that student loans are just one way families and students can cover education-related expenses. Be sure to consider other types of aid before taking out loans:

• Scholarships
• Federal grants
• Federal Work-Study
• State-sponsored financial aid programs
• School-sponsored financial aid programs
• Prepaid tuition plans

Talk to a financial aid counselor at the school of your choice to explore all of your options.

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