Pros and Cons of EdFed Loans 

Education loans can be confusing. With so many different types of loans available, it’s hard to know which one is right for you. But don’t worry, we’re here to help. In this article, we’ll give you the lowdown on EdFed loans. We’ll tell you what they are, how they work, and what you need to do to get one. So read on to find out everything you need to know about EdFed loans.

EdFed loans are federal student loans that are offered by the US Department of Education. They are available to both undergraduate and graduate students who need help paying for their education. There are two main types of EdFed loans: Direct Subsidized Loans and Direct Unsubsidized Loans. 

Direct Subsidized Loans are need-based loans that are available to undergraduate students who demonstrate financial need. The US Department of Education will pay the interest on these loans while the borrower is in school, during their grace period, and during any periods of deferment or forbearance. 

Direct Unsubsidized Loans are not need-based loans. They are available to both undergraduate and graduate students. The borrower is responsible for paying the interest on these loans from the time the loan is disbursed until it is paid in full. 

How Do EdFed Loans Work? 

EdFed loans work like any other type of loan. The borrower takes out a loan and agrees to repay it with interest over a set period of time. The repayment period for EdFed loans depends on the type of loan that is taken out. 

For Direct Subsidized Loans, the repayment period is 10 years. For Direct Unsubsidized Loans, the repayment period is either 10 years or 20 years depending on the amount that is borrowed. The borrower can choose which repayment plan works best for them when they apply for their loan. 

What Do I Need to Do to Get an EdFed Loan? 

To get an EdFed loan, you first need to fill out a Free Application for Federal Student Aid (FAFSA). This form will determine your eligibility for federal student aid, including Edfed loans. Once you have been determined to be eligible, you will then need to complete a Master Promissory Note (MPN) and Entrance Counseling session before your loan can be disbursed. 

The MPN is a legal document in which you agree to repay your loan with interest. The Entrance Counseling session is an online tutorial that provides information on your rights and responsibilities as a borrower as well as information on managing your money and repaying your student loan debt. 


EdFed Loans can be a great way to finance your education, but it’s important that you understand how they work before taking one out. Be sure to fill out a FAFSA and complete an MPN and Entrance Counseling session before applying for an EdFed Loan. And remember, if you have any questions along the way, our Student Loan Advisors are always here to help!