It’s a standard and desire in the
world today for students to seek after a college education after finishing high
school. The amount it cost to go to college is becoming extremely expensive,
and a most students experience issues paying for their tuition. To pay for
their tuitions, the majority of students need to get loans and once they finish
college, those students finish college with holes in their pockets from debt. Student
loan debt is at the highest its ever been with so many students graduating, and
then not being able to find a job, so they can’t pay off their loans, and they probably
don’t know the terms of their loans and the different ways they could pay them
There are multiple types of
financial aid accessible to students like loans, grants, and scholarships. There
are tons of different ways to receive financial help that students can use.
There are numerous sites that are filled with an endless list of grants. You
can get grants because of your race, GPA, income, and so forth. Some might make
you write a paper and then on some all you might have to do is apply. Scholarships
and grants is money that is given to you that you will never have to pay back.
Most are government funded from state or federal agencies. Loans on the other
hand have to be paid back and all have to be paid back.
There are two kinds of loans
students can get and those are Private and Federal Loans. The Federal loans are
given to students by the government. There are three different Federal Loans
and they are Federal Perkin Loan, Federal Stafford Loan, and Federal Plus Loan.
There are two different Stafford
loans a student can take out: Subsidized and Unsubsidized. To be qualified for
these, you have to be a full or part time student at a school with a Direct
Loan Program. Also the student has to have a major that will lead to a degree. Subsidized
loans are given to people based on what they put on their FASFA application.
There is only a certain amount of money a student can get a year, and the limit
varies according to the students financial situation. Also with subsidized
loans interest is paid for you by the government while you’re still in college.
Which is great because you are only having to pay the money you received and
don’t have to pay for any extra fees.
Furthermore, Unsubsidized loans
are different from subsidized loans because they don’t just give them to
students because they need the money. Another way the two are different is as
soon as you receive the money, interest begins to pile up. With interest adding
up, students could pay off their loans when they’re still in school. There is a
very slim chance someone will choose to let the interest build up on their loan
because they will end up paying hundreds of more dollars for waiting till after