It might be necessary to borrow money to pay for college.
Your school does not determine your eligibility for a student loan, although you can work with your financial aid office to find additional funding. To qualify for a Pell Grant and Stafford loans, you need to fill out an FAFSA form. If you need additional loans, you need to look for other lenders.
Federal Student Loans
The government determines your eligibility for a federal student loan. It looks at your income eligibility to see if you qualify for a Pell Grant as well. You may qualify for both subsidized and unsubsidized loans. Payment for these loans becomes due after you graduate from college. Each year, you need to apply for the loans again. You need to be progressing toward a degree and finish each semester to qualify for the next year's loans.
Private Student Loans
You can get private student loans through your bank or credit union. Your financial aid office might be able to help you find a lender to help you pay for college. If you are paying out-of-state tuition or attending a private school, you could need extra money just to cover the more expensive tuition. The terms on private student loans are different from federal student loans. The bank determines whether it will lend to you. The interest rates are higher than federal loans. Some banks require a cosigner if you do not have a good credit history.
Student Loan Alternatives
There are alternatives to taking out student loans or if you do not qualify for student loans. You can apply for scholarships and grants, and you can work to pay for college as you attend. One option is to attend college part-time while you work full-time. Another is to find a job that pays a portion of your tuition. Or you could find a school that is more affordable such as an in-state school. Although these options take more time, they provide an alternative to student loans.
Paying for College
When attending college, you should look at all sources of funding available to you. Contact your financial aid office and apply for all the scholarships and grants you qualify for through your school. You can also apply for private scholarships not related to your school and work to supplement the money you receive to pay for school. Student loans will not be discharged during bankruptcy, and you will need to pay back everything you borrow, so be careful of how much you take out.
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