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Student loans are loans offered to students to assist in payment of the costs of
professional education. These loans usually carry a lower interest rate
than other loans and are usually issued by the government. Often they
are supplemented by student grants which do not have to be repaid.
While
included in the term "financial aid" higher education loans differ from
scholarships and grants in that they must be paid back. They come in
several varieties in the United States.
Federal
student loans made to students directly: No payments while enrolled in
at least half time status. If a student drops below half time status,
the account will go into its 6 month grace period. If the student
re-enrolls in at least half time status, the loans will be deferred, but
when they drop below half time again they will no longer have their
grace period. Amounts are quite limited as well.
Federal student loans made to parents: Much higher limit, but payments start immediately.
Private
student loans made to students or parents: Higher limits and no
payments until after graduation, although interest will start to accrue
immediately. Private loans may be used for any education related
expenses such as tuition, room and board, books, computers, and past due
balances. Private loans can also be used to supplement federal student
loans, when federal loans, grants and other forms of financial aid are
not sufficient to cover the full cost of higher education. |
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Student financial aid refers to funding intended to help students pay educational expenses.
This includes tuition and fees, room and board, books and supplies, and
so on for education at a college, university, or private school. The
federal government provides need-based federal aid called Federal
Student Financial Aid, which is composed of different programs, grants,
and scholarships, work and loan programs.
To qualify for federal
student aid, a student must file the Free Application for Federal
Student Aid (FAFSA). This FAFSA uses a calculation taking into
consideration,income and assets, to determine a student's Expected
Family Contribution (EFC). Colleges use the this information to decide
what types of financial aid a student is eligible to receive. Students
must complete the FAFSA each year to be considered for financial aid.
General
governmental funding for public education is not called financial aid,
which refers to awards to specific individual students. A scholarship is
sometimes used as a synonym for a financial aid award, although grants
and student loans are also components of financial aid packages from
students' intended colleges.Institutions
may also offer their own student financial assistance, in the form of
need- or merit-based aid, as well as endowed scholarships. Some schools
may only require the FAFSA. Write Comment (0 comments) |
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