Financial Planning_Student Loans
Review this document to learn basic information about student loans.
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Loans are different from scholarships and grants, which are available to those who meet specific criteria.
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Loans come from a variety of sources such as the federal government, private businesses, and other organizations.
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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.
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Loans have limitations such as annual and lifetime borrowing amounts.
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Loans are available for full-time and part-time enrollment.
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You do not have to borrow the entire loan amount that is offered to you.
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Loans may be used for education-related expenses (Example: books, supplies, tuition, housing).
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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).
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Some loans have built-in grace periods, which delay repayment for a specified time.
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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.