FAFSA & Student Loans Education loans come in three major categories: student loans (e.g., Stafford and Perkins loans), parent loans (e.g., PLUS loans) and private student loans (also called alternative student loans). A fourth type of education loan, the consolidation loan, allows the borrower to lump all of their loans into one loan for simplified payment. Each student seeking financial assistance can Complete the Free Application for Federal Student Aid (FAFSA). Filing this application will give the loan official of federal student loans, Stafford Loans, Perkins Loans, and PLUS Loans the information needed to determine the amount of government loan you will qualify for. Students that do not file the FAFSA form may have problems consolidating student loans or may not qualify for other aid programs that require you file a FAFSA. If you fail to file a FAFSA, you may cut yourself out of almost every form of student aid. |