College Financial Aid – subsidized and unsubsidized loans


There are many different types of loans available for college tuition. Stafford loans are the most common type of financial aid for students that are available today. Stafford loans have also been known as direct loans and FFEL loans. Whenever you get a Stafford loan, the loan will be one of two types. The first type is a subsidized loan and other species is unsubsidized loans.

subsidized loans are the most common type of loan students get today. The financial director will usually find all available money from the government available for each student to allow them to apply for subsidized loans. Subsidized loans are available only for people who need the money to attend school. You can usually choose 810 or 25 years to pay back the loan. The interest rate is usually fixed at around 7%. The good thing about this alone, the government pays all the interest on it until you graduate. Then, on top of that, the government gives you an extra six months after you graduate before they have to start repayment of the loan.

On subsidized loans are available for all who want to borrow for college. This loan is not based on the student’s need for money. You need to be in college at least half time to be qualified. At most high schools this is to take six credit hours of courses per semester. There are many different options refund are available for this long. You can apply for income based repayment plan, which is based off of your adjusted gross income on your taxes. You can choose to pay the money back period of ten years at a fixed rate. You can also choose to pay the money back over a 25 year period at a fixed interest rate. You will be required to pay for all interested approved while you’re in college. Unlike subsidized loans where the government pays for your interest, you are 100% responsible. You can pay interest as you go to school or you can wait until you’re done. If you are considering an independent student, then you will be able to borrow more money than other students who are still considered dependents. The government understands you need the money for more than teaching while attending school. Many students will be living on their own for the first time in apartments with bills to pay. Many students also rely on cars for transport to take them back and forth to school and work. You can take advantage of borrowing this money, just as long as you make sure to use it wisely.