Federal student loans are made through government programs. Eligibility, limits and repayment rules depend on the program, the borrower and sometimes the date the loan is made. Start with StudentAid.gov and the school's financial-aid office.

How the borrowing arrangement works

Complete the required aid process and review the award information. Subsidized and unsubsidized loans differ in how interest is handled in qualifying periods. Ask the school to explain the exact loan type, amount and timing shown in the aid offer.

Costs and repayment

Before accepting, record the interest rate, any loan fee and the repayment rules that apply. Do not rely on an older summary of repayment programs. Replacing federal debt with a private refinance can change access to federal provisions, so examine that choice separately.

Preparing to compare offers

• Use your own StudentAid.gov account and check the correct FAFSA award year.
• Review the school's offered loan amount and ask about required counseling and promissory-note steps.
• Record the loan type, disbursement dates, interest terms and servicer contact details.

Questions worth asking

• Which federal loan is in my aid offer?
• Which academic year and disbursement rules apply?
• What would be lost by refinancing privately?

Keep current benefits separate from assumptions

Confirm repayment-plan availability and program changes directly with Federal Student Aid. Refinancing a federal loan into a private loan takes it out of the federal system and can mean losing federal protections; compare that consequence before proceeding.

Where do I verify current federal terms?

Use StudentAid.gov and your school's financial-aid office for the rules that apply to your situation.

Are subsidized and unsubsidized loans identical?

No. Among other differences, interest treatment in certain periods differs. Confirm the conditions for the loan offered.

BorrowCompass provides a guide to this topic at how federal student loans work. Review current provider terms before making a borrowing decision. BorrowCompass does not issue loans or guarantee approval.