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Tag Archives: federal student loans

Breaking Down Student Loan Options

Student loan options

The cost of education has increased dramatically over the past few decades, often forcing students and parents to consider taking out loans to pay for tuition, fees and room and board. While grants and scholarships are available, they may not cover the cost of a student’s final bill. Fortunately, there are several different types of student loan programs available. The eligibility for these programs, as well as loan terms, differ by program, so it’s important that students, and their families, do some research before making the decision to borrow. Student Loan Types Federal Direct Loans Previously known as “Stafford Loans,” the Direct Loans program provides loans to students based on need. There is no credit check required to apply for a direct loan There are two subtypes of direct loans available: Subsidized and unsubsidized. The government pays the accruing interests on a subsidized loan while the student is still in school. Unsubsidized loans begin to accrue interest as soon as they are disbursed. One major advantage to choosing federal direct loans is that there are several programs that can help borrowers manage repayment, particularly if the borrower is unemployed or doesn’t make a lot of money. These include the ability ...

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