Financial Planning_Student Loans

Review this document to learn basic information about student loans.

• Loans are different from scholarships and grants, which are available to those who meet specific criteria.

• Loans come from a variety of sources such as the federal government, private businesses, and other organizations.

• Loan type matters! Some loans accrue (build) interest and/or require monthly payments while you’re in school. Other loans do not accrue interest or require payments until you graduate.

• Loans have limitations such as annual and lifetime borrowing amounts.

• Loans are available for full-time and part-time enrollment.

• You do not have to borrow the entire loan amount that is offered to you.

• Loans may be used for education-related expenses (Example: books, supplies, tuition, housing).

• You can take advantage of a variety of loans, if eligible, to cover college expenses (Example: loans borrowed from a bank, as well as loans borrowed from the federal government).

• Some loans have built-in grace periods, which delay repayment for a specified time.

• There can be serious penalties for failure to comply with loan term agreements or loan repayment plans.

Next Steps: Educate yourself about the loan options that are available to you. Check out this website for detailed information about loans https://studentaid.gov/understand-aid/types/loans. Consult with a financial aid advisor, who is trained to assist students with questions about student loans.