What is a Student Loan?
A student loan is money you borrow for educational purposes that you must pay back with interest. The specific sum of money you borrow is called the principal. Interest is a percentage of the principal which you pay as a fee for borrowing. When it comes time to pay back the principal and interest you usually pay in monthly installments. If you fail to repay (or default) the government may penalize you. What kind of loans are available? All qualified financial aid students may borrow through the Federal Family Education Loan Program (FFELP which includes the Federal Stafford loan and the Federal PLUS loan). Federal Stafford Loans allow the student to borrow money from a private lender to help pay for education costs. Under this program, the lender will make a loan directly to you through the school. The Federal Stafford Loan Program includes Subsidized loans and Unsubsidized loans. What is the difference between the two types of Federal Stafford loans? • A subsidized Federal Stafford Lo
A student loan is a form of financial assistance which is offered to college students. There are a number of different types of loans available to students, some of which have very favorable interest rates and repayment terms. Students can use student loans to pay for tuition and housing expenses, and to handle other expenses related to education, such as purchases of computers, transportation costs, and so forth. The goal of most student lenders is to make education accessible to all people, with the lender banking on the fact that people will be able to repay the loans once they graduate with marketable skills. When students attend a college or university, they have the option of applying for financial aid. Applying for financial aid gives the student access to a range of grants, scholarships, and loans, which are offered on need-based and merit-based terms. Typically, students will be informed that they qualify for a set amount of student loans, and they can choose to accept those l
A student loan is money you borrow from the Federal government or from your school to finance your education. Students in Utah can borrow under three Federal loan programs: the Federal Perkins Loan (if your school participates in this program), the Federal Subsidized Stafford Loan, and the Federal Unsubsidized Stafford Loan. Parents of undergraduate students can also borrow under the Federal PLUS loan program. How much should I borrow? Financing a college education can be very challenging. Because loans need to be paid back with interest, they should be a last resort. Other sources of financing include part-time or summer work, assistance from parents or relatives, grants, and scholarships. Scholarships and grants are awarded directly to students by numerous organizations and companies. While not easy to get, scholarships and grants need not be repaid, so it is worth checking with your employer or your parents’ employer to see if there is a scholarship you might qualify for. The Financ
