Federal loans refer to financial aid that is provided by the United States government for students who are pursuing higher education. These loans are offered through various programs such as Stafford Loan, Perkins Loan and PLUS loan among others. The main advantage of federal loans is that they offer low-interest rates and flexible repayment options to borrowers. Additionally, the government may provide certain benefits or forgiveness for those who work in specific fields or meet other criteria after graduation. In summary, federal loans are a reliable source of funding for students seeking higher education, as they come with attractive terms and conditions.