 TITLE: What Are the Different Types of Federal Student Loans? CONTENT: How Do Federal Student Loans Work?\n----------------------------------\nWhen you take out a federal student loan, you borrow money from the U.S. government—specifically, the Department of Education—for your education expenses and agree to pay it back over time, plus interest. Your loan payments typically kick in six months after you leave school, and the loan may or may not accrue interest while you're attending college depending on which types of loans you have.\nFederal student loans feature a 10-year repayment schedule, though programs like income-driven repayment can stretch out that term for eligible borrowers who need lower monthly payments. Interest rates on new federal student loans are updated every year on July 1, and interest rates are fixed for the life of the loan once disbursed.\nTo be eligible for any type of federal student loan, you'll need to fill out the Free Application for Federal Student Aid (FAFSA) for each school year you attend college. You'll be offered federal student loans as part of your financial aid package provided by your school's financial aid office. To accept the federal student loans offered, you'll fill out a promissory note agreeing to the loan's terms and work with your school's financial aid office to make sure you receive your loan funds. If you're a first-time borrower, you'll be required to complete online credit counseling to show you understand your loan obligation.\nHere are the three main types of federal student loans. END