The loans that are provided by the government for the benefit of the underprivileged students is called as federal student loans. They can be availed by both the parents and students. While millions have benefited by this program, there are still several problems associated with the same :

• The federal loans have a lot of paperwork associated with them. It is a real hassle to wade through all these papers and documents.
• You really have to answer a lot of questions satisfactorily before you can even be considered for this program.
• You have to prove your financial need when you apply for this program. If you cannot adequately prove it, you may either not receive the full benefit of this program or you may not get the loan at all.
• The amount that has been allocated by the state for this program is limited as compared to the demand for these loans. So, the government should allocate more money for the federal loan program.
• Not all the students get equal benefit under this loan program.

If the government takes some active steps to remove these drawbacks, federal student loans will become the most preferred source of financing for students. But, one really wonders if the government does hear our pleas?

The paperwork involved in the federal loans really bogs you down, Okay… I understand the government wants to clearly verify if the loan is reaching the right people. That is good news but the screening process is not really as effective as what the government thinks it is. Lots of undeserving candidates get more money than deserving and financially needy ones.