Desperately Seeking Student Loans

Little do some college-bound students realize, but getting accepted to their university of choice is just the first step, the first hurdle to overcome on the way to that Bachelor s Degree.Convincing the university that it has to accept you are almost easy, compared to financing a college education. Fortunately, there are innumerable opportunities for financial aid out there, from loans for students, to loans for parents, to consolidated loans.

Student loans are the most common of these, but when some students receive the information on their financial aid packages, they really do not know what they are looking at, let alone what it is. To make things a little easier, here is a discussion on the fundamentals of student loans. Student loans are, of course, loans for students. That is to say, the student is the borrower, rather than their parents or guardians – meaning, too, that the students are responsible for paying the loans back once they have graduated.

The most common student loan is a Stafford Loan, which can be either subsidized or unsubsidized. With subsidized Stafford Loans, the government covers the interest on the loan while the student is enrolled in school. They also pay the interest for the six month grace period following graduation and during any authorized deferments after graduation. Subsidized Stafford Loans are need-based scholarships, awarded to those students who need the most money for college. Conversely, unsubsidized Stafford Loans are solely the responsibility of the student, as they are not need-based. Students must pay the interest themselves, even while they are attending college. However, a deferment is possible, as long as the student realizes that the accrued interest will be applied to the principal.There are also Perkins Loans, which are awarded to students who demonstrate an exceptional need for financial aid.

Next up is private student loans. Whereas with Stafford Loans – the subsidized Stafford as well as the unsubsidized version – and Perkins Loans, a student can receive them – potentially – by filling out the Free Application for Federal Student Aid form, FAFSA offers no private student loans. Private student loans are instead obtained through third-party and/or private lenders. Consequently, they generally come with much higher interest rates than federal student loans, however, they can be a life-saver if a student s financial aid package is not enough to cover his or her college education and financial needs.

In addition to all of these – and sometimes including them – there are also student loans for graduate students. Undergraduates are by no means the only college students who have the opportunity to receive student loans. Simply because there are so many different forms of financial aid available to all variety of students, it can be extremely difficult to tell what is what.

So, in closing, student loans apply to students: the students apply for them, the students borrow them, and the students pay them back when they have graduated or are able. There are subsidized student loans and unsubsidized student loans available, as well as private student loans without number. What a student receives depends solely on his or her financial need and what he or she believes will suit his or her college and financial requirements best.

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