The Facts You Need on Student Loans
For students who cannot afford to directly pay for their college, student loans are typically used to obtain the cash they are needing. Student loans are one of the most common ways young adults use to fund their education after high school.
A lot of parents do not have the money to directly pay for their children's post-secondary education. So a blend of scholarships, grants and student loans is used to pay for the costs of college or university. This usually involves not only tuition fees but the cost of textbooks, living expenses and other fees that come along with post-secondary education.
New students can utilize a few kinds of student loans. The most common type found is the federal loan. These loans has smaller limits, and is frequently restricted to paying for tuition fees only. The federal student loans are highly watched by the government, and can be acquired through the college's financial aid program. They usually have an extremely small interest rate. The student does not need to start paying back the amount owed until they have either finished school or are no longer attending university full time.
When a student goes to register for federal student loans, there are several things that should be remembered. First, there is typically a six month no payment period associated with these types of loans. This means that, from after the point in time when the student graduates or has cut back to part time classes, they won't have to begin returning money to the lender for the set amount of time. Interest, however, starts growing as soon as you graduate from school or have fallen to half-time attendance. The payments and amounts owed affect the student's credit history.
There are also student loans that are granted to adults instead of to the student. Higher maximums are available with these loans. The interest rate may also be higher than the federal student loans that are more commonly issued. As well, interest starts to accrue right from the beginning. This is due to the fact that the guardian is the one responsible for repayment, not the student. This method does not help improve the student's credit rating.
Lastly, there are private alternative student loans. These go outside of the government regulated system, and are frequently reserved for individuals who need more than the amounts given to typical students. Private loans have the highest maximums, and may also bear the highest interest percentages as well. Personal student loans are given either to the guardians or the students, and can be done through a variety of institutions as well as private companies. This option is usually used by individuals attending very high cost universities where federal funding is not enough. Students can use both private and federal student loans at the same time if required.
A lot of parents do not have the money to directly pay for their children's post-secondary education. So a blend of scholarships, grants and student loans is used to pay for the costs of college or university. This usually involves not only tuition fees but the cost of textbooks, living expenses and other fees that come along with post-secondary education.
New students can utilize a few kinds of student loans. The most common type found is the federal loan. These loans has smaller limits, and is frequently restricted to paying for tuition fees only. The federal student loans are highly watched by the government, and can be acquired through the college's financial aid program. They usually have an extremely small interest rate. The student does not need to start paying back the amount owed until they have either finished school or are no longer attending university full time.
When a student goes to register for federal student loans, there are several things that should be remembered. First, there is typically a six month no payment period associated with these types of loans. This means that, from after the point in time when the student graduates or has cut back to part time classes, they won't have to begin returning money to the lender for the set amount of time. Interest, however, starts growing as soon as you graduate from school or have fallen to half-time attendance. The payments and amounts owed affect the student's credit history.
There are also student loans that are granted to adults instead of to the student. Higher maximums are available with these loans. The interest rate may also be higher than the federal student loans that are more commonly issued. As well, interest starts to accrue right from the beginning. This is due to the fact that the guardian is the one responsible for repayment, not the student. This method does not help improve the student's credit rating.
Lastly, there are private alternative student loans. These go outside of the government regulated system, and are frequently reserved for individuals who need more than the amounts given to typical students. Private loans have the highest maximums, and may also bear the highest interest percentages as well. Personal student loans are given either to the guardians or the students, and can be done through a variety of institutions as well as private companies. This option is usually used by individuals attending very high cost universities where federal funding is not enough. Students can use both private and federal student loans at the same time if required.
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Before you rush out and apply for a student loan, you should be aware of all the implications. Visit the Student Loans department at i-KnowHowOnline for all the information you need.
posted by Credit Counseling at
6:10 AM
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