| There is no way you can compare the value of | | | | on family income, can take a Stafford student loan. |
| college scholarships against student loans. Who | | | | The beauty of this loan is that the U.S. Department |
| wouldn't want a college scholarship that would | | | | of Education pays the interest that accrues while the |
| provide grant money that did not have to be repaid | | | | student is in college and for six months after |
| versus paying back money borrowed plus interest. | | | | graduation. |
| Simply put, a scholarship is your money to spend on | | | | Other loans are called "non-subsidized" student loans. |
| college. A student loan is just that: Borrowed money | | | | These loans are not given based on need, and any |
| that must be repaid. | | | | student can request an unsubsidized student loan. |
| A college scholarship is real money that a student is | | | | With a non-subsidized loan students are charged |
| granted to use for such things as college tuition, | | | | interest from the day the check is delivered. For both |
| room and board and other expenses as allowed by | | | | loans the principal payments will begin 6 months after |
| the stipulations of the college scholarship. A student | | | | graduation, but as mentioned, the non-subsidized |
| loan is money loaned to students for college tuition | | | | student loan would have interest payments due from |
| and other expenses, but students pay interest | | | | day one of the loan. |
| immediately as soon as the check is used | | | | Therefore, it is always in a student's best interest to |
| The best type of college scholarship is one that is | | | | take the time to search for college scholarships. This |
| granted for all four years of college. These | | | | means searching for awards even after they are |
| scholarships are called "renewable." On the other | | | | accepted to a school, and searching for scholarships |
| hand, a student loan is typically taken out each year | | | | during college. The goal is to have a student graduate |
| from a loan granting institution or sometimes from | | | | with the smallest amount of debt in student loans as |
| the college itself. The interest rate on the loan will | | | | possible. This means taking advantage of college |
| vary. | | | | scholarships as much as possible, and covering extra |
| Some loans are called "subsidized" loans. Students | | | | expenses with loans or job income. |
| who are eligible for subsidized student loans, based | | | | |