| With the cost of college tuition rising every year, | | | | Federal student loans require no payment while |
| many students find relief by getting student loans. | | | | enrolled in at least half time status. The student must |
| Student loans can allow a student to go to a school | | | | maintain the minimum hours required to keep from |
| that they might other wise not be able to afford. | | | | having to make payments until they graduate. If the |
| Typical student loans have a much lower rate than a | | | | student falls below the hours allowed, their account |
| traditional bank loan because they are insured and | | | | will go into a 6 month grace period. If the student |
| guaranteed by the government. Lenders will usually | | | | re-enrolls in at least half time status, the loans will be |
| give you a longer period of time to pay back the | | | | deferred, but when they drop below half time again |
| money and most student loans don't need to be paid | | | | they will no longer have their grace period. |
| back until the student have completely finished | | | | Student loans made to parents usually have a much |
| school. | | | | higher limit, but monthly payments start immediately. |
| Many times student loans are accompanied by grants | | | | Private student loans are similar to federal student |
| and scholarships which are forms of financial aid | | | | loans, in that they do not have to be paid back until |
| awarded by schools, businesses, institutions, | | | | after graduation. However, interest starts to accrue |
| associations and private industry that does not have | | | | immediately. Private loans may be used for any |
| to be repaid. It's wise to apply for scholarships and | | | | education related expenses such as tuition, room and |
| grants first, and then you can apply for a student | | | | board, books, computers, and past due balances. |
| loan to cover the remainder of your costs. | | | | |