These loans don’t require a credit check and offer more flexible payment options than private student loan companies, including income driven repayment plans that cap payments based on your income. In addition, borrowers can get lower interest rates on their federal loans by filling out the FAFSA form and demonstrating financial need. Lastly, students that take out a federal student loan will not need a cosigner (except for Parent PLUS Loans), which is required with many private lenders.