Why should I complete the FAFSA if all I am offered are loans?

The FAFSA is used to determine eligibility for federal student loans. Federal loans have several advantages over non-federal loans.

  • Repayment is deferred until after graduation or if the student drops below half-time enrollment status in school.
  • The interest rate is fixed and usually a lower rate than credit cards.
  • No credit check is required. To qualify, students must be U.S. Citizens or eligible non-citizens, in good standing on any previous student loans, and enrolled at least half-time in a degree-seeking program.
  • Some student loan interest is tax deductible.