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. 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.