LOANS FOR STUDENTS: Help For Your Schooling Needs

2007-03-28 16:27:23

( Financial )



There are generally two kinds of loans for students – the subsidized and the unsubsidized student loan. Subsidized loans are federally-sponsored loans where the government pays your loan interest while you’re in school or at least half the time you’re in school. For unsubsidized ones though, you get to pay for the interest immediately even while you’re still in school.

The interest rates for subsidized loans for students are lower and the repayment period is deferred until six months after you graduate or drop out of school. The six months deferment given for your loan repayment is called the grace period, within which you are not charged any interest for your loan.

The given credit for students for subsidized loans is based on the government’s evaluation and assessment of a student’s need for financial assistance. There are also eligibility requirements that you should meet to qualify for this type of loan.

Should the subsidized loan amount turn out to be insufficient for your schooling needs, you are free to apply for unsubsidized loans as additional financial aid. Unsubsidized loans for students are unsecured private loans where you can loan the total amount of your education minus other financial aids you received. The loaned amount can cover all school-related expenses from tuition fees to books and school supplies as well as room and board.

Unsubsidized loans for graduate students as well as personal loans for students are also available to provide financial assistance. Unlike subsidized loans however, the repayment period for unsubsidized loans begins immediately after the loaned amount is fully disbursed.

Disbursement for loans can be in the form of a check or a direct deposit either to your personal or the school’s account. The funds are disbursed in at least two installments. The college needs to verify that you are enrolled for at least a half-time basis before any disbursement.

College education doesn’t come cheap and it should be noted that an average of sixty four percent of students go through college with the help of loans for college students.


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