A Federal Student Loan Provides Funding For College
Since many students begin college before they have made arrangements to pay for every expense they will incur while getting an education, they often have to get grants and loans in order to pay for necessaries like tuition and rooming. Many students take out one, two, or three federal student loans so that they can afford to pay for such expenses.
One of the advantages of a federal student loan is the interest rate is fixed by the government and while many of the loans are handled by traditional lenders, the loan is guaranteed by the government.
Many students who would not be able to get a loan from most traditional lending agencies are able to do so by means of a federal student loan, which makes them quite attractive, as do the government's guarantee and low interest rate.
A grace period of six months is often given to individuals right after they graduate from college during which they do not have to make any payments on their student loans. The government actually pays the interest on subsidized loans during this time period.
If the person who has taken out a federal student loan chooses to pay during the initial six month period, the money they pay will be taken off of the loan's principal. Loans that are not subsidized will incur interest during the first six months even if the student makes no payments. Those charges will then be added to the principal. Regardless of whether or not the loan is subsidized, you will have to start paying the principal and the interest on your student loan when those first six months are up.
Portions Of Federal Student Loan May Be Forgiven
The government is all about helping recent college grads with their federal student loan and there are numerous ways in which a portion of the loans can be forgiven. By volunteering with some organization such as the Peace Corps or VISTA can erase part of the loan balance for every year the graduate volunteers with any of the agencies.
New graduates who will be working as teachers can also get a break on their student loan debt. By working at certain schools for a period of generally five years, teachers can have up to 85% of their federal student loans forgiven.
One of the advantages of a federal student loan is the interest rate is fixed by the government and while many of the loans are handled by traditional lenders, the loan is guaranteed by the government.
Many students who would not be able to get a loan from most traditional lending agencies are able to do so by means of a federal student loan, which makes them quite attractive, as do the government's guarantee and low interest rate.
A grace period of six months is often given to individuals right after they graduate from college during which they do not have to make any payments on their student loans. The government actually pays the interest on subsidized loans during this time period.
If the person who has taken out a federal student loan chooses to pay during the initial six month period, the money they pay will be taken off of the loan's principal. Loans that are not subsidized will incur interest during the first six months even if the student makes no payments. Those charges will then be added to the principal. Regardless of whether or not the loan is subsidized, you will have to start paying the principal and the interest on your student loan when those first six months are up.
Portions Of Federal Student Loan May Be Forgiven
The government is all about helping recent college grads with their federal student loan and there are numerous ways in which a portion of the loans can be forgiven. By volunteering with some organization such as the Peace Corps or VISTA can erase part of the loan balance for every year the graduate volunteers with any of the agencies.
New graduates who will be working as teachers can also get a break on their student loan debt. By working at certain schools for a period of generally five years, teachers can have up to 85% of their federal student loans forgiven.
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