When you begin applying for colleges, you will find that tuition
and boarding fees are extremely expensive. Unless they are
independently wealthy, few people can pay for college outright.
If you do not qualify for scholarships, financing your education
can seem virtually impossible, even with the help of regular
financial aid grants. However, there are many low interest
student loans available for students that qualify for them.
Rather than putting off your education, you can borrow money and
defer payment until your have graduated and have found a
full-time job with which you can pay back what you owe.
The first step toward applying for student loans is to fill out
a financial aid application form called the Federal Application
for Student Financial Aid. Once you have been accepted to a
college or university, you will be sent a packet of financial
aid information. You will be asked to provide your own and your
parents' financial information so the aid agency can assess your
need and your ability to pay. There are many government based
grants, like the Pell Grant, that give money to low-income
students and their families with no obligation to ever pay it
back. However, grants can only pay for so much, and you will
most likely require student loans to finance the rest of your
educational expenses.
If the free financial aid you qualify for is not enough to cover
your expenses, student loans can help you make it through
college to get the degree you need to be financially successful
later in life. There are many different types of student loans
available for both conventional and nontraditional students.
Federal education loans like Perkins and Stafford Loans can be
funded by either the school, your bank, or by the U.S.
Department of Education. Private education loans are not
sponsored by the government and draw funds from a variety of
different sources. If you are still considered a dependent,
either you or your parents can apply for student loans to
finance your education.
Guaranteed Student Loans, or Stafford Loans, typically have
lower interest rates than private loans. These loans are
guaranteed by the federal government, and they can be subsidized
or unsubsidized. If you have a subsidized loan, the government
pays your interest while you are in school. With an unsubsidized
loan, you begin accruing interest while you are in school, but
you do not have to pay it back until you have graduated. You
must show financial need to obtain a subsidized loan, whereas
unsubsidized loans are available to anyone who applies.
Often times, Direct Student Loans are the loan of choice for
many students. Direct loans are handled directly by the school
you are attending. These types of loans typically have lower
interest rates than most others. Your college or university may
obtain the funds from a variety of sources, but all of the
payments are generally made to the school itself. Once you are
finished with school, you typically have anywhere from six to
nine months to begin paying back your accrued debt.
If you finish school and cannot afford to pay back your student
loans, they may be placed in default. This affects your credit
rating and can keep you from getting other loans in the future.
You can be granted a deferment on your loans if you decide to
continue your schooling in graduate studies, or if you are
unemployed. Deferment, however, does not last forever. If you
have many different student loans, you can often consolidate
them using a consolidation service, or, if you have direct
loans, you can consolidate through your school's lender.
About the author:
With many years in the lending industry, Sintilia Miecevole's
site http://www.fzloan.com will help you figure out what your
college costs will be and investigate the various funding
options that meet your needs including a loan. Visit
http://www.fzloan.com for information on how to double your
lifetime income over people with high school diplomas.
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