Student Loans
What are student loans?
Student loans are special loans given to students to help with the costs of a college education. These costs may include tuition and fees, room and board, books, transportation, technology needs (such as computers), and necessary care for dependents. Most student loans are funded by the federal government although they can also be financed through individual institutions and private lenders. How are student loans different from regular loans? Student loans typically offer lower interest rates than regular loans and may allow for deferred payments on principal and interest until after graduation. What are Stafford Loans and who is eligible? Stafford Loans are one of the most popular types of federally funded student loans. Almost all students are eligible for Stafford loans regardless of credit score or other financial consideration. Stafford Loans can be either subsidized or unsubsidized. What's the difference between a "subsidized" and "unsubsidized" Stafford Loan? A "subsidized" loan is a loan in which the interest is paid by U.S. Government while the student is in school, which means the loan does not accrue interest until after graduation. An "unsubsidized" loan, by contrast, does accrue interest, albeit at a lower rate than regular loans. Whether a student receives a subsidized or unsubsidized loan (or a combination of both) is largely determined by the student's individual need. How do I get a Stafford Loan? Because Stafford Loans are federally funded, students will first need to fill-out a Free Application for Federal Student Aid or FAFSA. FAFSAs take about an hour to complete and can be obtained and submitted online.
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