Federal student loans are backed by U.S. Government. They are not based on credit histories of borrowers, since most people applying for and receiving them come right out of high school and do not have a credit history yet. They feature lower interest rates that result in smaller monthly payments. While government student loans may not be sufficient to cover the entire cost of education alone, they offer a great money-saving opportunity to fund college education, since they currently have an interest rate cap of 8.25%, with factual rates way lower than that.Student Loan Consolidation Is Also Available With Help of Federal GovernmentU.S. Government, besides lending money to students, also offers loan consolidation services. Many students find it overwhelming to service the amount of debt they have accumulated through school years, especially without securing a stable employment in their field of education. While it may take some time and effort to work on student loan consolidation, the benefit is great, allowing a student to get one lower monthly payment instead of many. The interest rates are low, usually way less than you may get from private lending institutions, and many incentives are offered to those making timely payments. With a wide variety of options available from Federal Government it is important to research all of them, ensuring the right terms for your individual needs.Student Lending Is Being Modified With More Changes on the WayThere have been many changes in the way student loans are handled in recent years. Federal Government is serving as the largest student loan vendor, repurchasing loan notes from banks and other lenders. The Obama administration has made these changes to make higher education more affordable during turbulent times in economy, ensuring more people would be able to get college education, since many private lenders had cut their student lending activities during recession. The government has exercised massive student loan repurchasing activities to keep the banking system from falling apart. While this was only projected as a short-term temporary activity, it had enabled many people to obtain cheaper student loans.With more changes in student lending on the way enforced by government, an uncertainty rises whether those would benefit the ability of students to get financial aid. Obviously, if government will continue to pump money into failing banking system, obtaining financing for college education may be a way harder task to accomplish. Today, however, with favorable changes for students, it is a good time to consider getting a student loan or refinancing existing obligations.