College Financial Aid
When you’re considering college—or some form of education after high school—financial aid almost always comes to mind. How much aid you’ll receive may be a deciding factor on whether or not to attend college or if you’ll be able to attend the college of your choice.
When considering how to pay for your education, your first need to maximize scholarships and grants. If you’ve already done that and still need more money for college, a federal student loan (a loan from or guaranteed by the federal government) is your best option.
Every year, more than $90 billion in federal student aid is available to students. The fact is, almost everyone is eligible to receive a federal student loan because not all loans are based on financial need.
You can receive subsidized or unsubsidized loans under our largest type of loan, Stafford Loans. Those who have the most need will be eligible to receive a subsidized Stafford Loan (the government pays the interest while you’re in school at least half-time and during grace and deferment periods).
Others may be eligible to receive an unsubsidized Stafford Loan (you must pay all the interest that accrues while you’re in school or can have it added to your loan, or capitalized).
Both types of loans have the same benefits—a low, fixed interest rate of 6.8 percent; generous repayment periods, you begin repayment if you go to school less than half-time, leave school, or after you graduate; there are deferment and forbearance options; and no credit checks.
As with any financial decision, you should understand the process to ensure you make informed decisions when it comes to paying for your education.
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