Finish College with the Help of a Subsidized Student Loan

2007-03-08 10:33:40

( Financial )



Getting a college education is a serious matter, especially to those who have to produce the money for the expenses it entails. A student like you is required to purchase books, and expenses for daily living allowances add up to the overall costs of the education you seek. With this, you just have to look for available options. And one such option is getting a subsidized student loan.

A subsidized student loan is generally a program spearheaded by the government and executed in partnership with educational institutions. Simply put, if you want to go to college but are unable to do so because you or your parents cannot afford the cost, you can apply for a subsidized student loan. The amount you may borrow depends on how much you need the financial aid, and also on the maximum allowable amount as determined by the program’s provisions. The government also pays for the interest, at least while you are still in school. That is where the term subsidized gets its virtue. So in subsidized student loans, you need only worry about repaying the principal; at least while you are in school, that is.

To qualify for a subsidized student loan, you need to prove your need for financial aid through supporting documentations. The most obvious requirement would be tax returns, a list of your assets and liabilities which are usually elicited through a lengthy application form, and other relevant financial status information that could prove to the loan-granting bodies that you need all the financial help you can get.

Of course, if you think you are not eligible for a subsidized student loan, you can think of all the other options you have such as no income verification loans and stated income verification loans. You can also get a low income loan. However, you will do well to remember that these types of loan are not specifically designed for students. They usually have higher interest rates and less lenient payment terms. The high rates of interest you will have to meet while in college will certainly be a weighty burden to bear.

Whether you are lucky enough to get a subsidized student loan or are forced to choose from among no income verification loans, stated income loans and a low income loan, you always need to keep one thing in mind. If you want a college education badly enough, the lack of funds should not be an insurmountable obstacle to your getting one.


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