Student loans available under federal programs have very attractive terms when compared to most borrowing options — lower interest rates that are set by the government, the ability to postpone making payments, longer repayment terms, and less stringent credit requirements.

For a better understanding of federal student loan options, select one of the following:

• Federal Stafford loans
• Federal Perkins loans

Parents should check out the Parent PLUS federal loan.

Students and parents should always maximize federal loans before investigating alternative student loans.

Federal student loans are step 2 in Sallie Mae's 1-2-3 approach to paying for college^SM.