Once you’re accepted to the college of your choice, it is an exciting time. But then reality sets in and you realize you have to figure out a way to pay for it. In just the last two decades, the cost of a college education has risen as much as 75% at some schools.
If you are part of a military family, you need to know about scholarships that are just for spouses and children of active and retired military members. But, as with most scholarships, they will not cover the entire cost of an education, and taking out a loan may be necessary. Read on and discover all you need to know about loans for higher education.
Subsidized Vs. Unsubsidized Loans
Federal student loans come in two varieties, subsidized and unsubsidized. A subsidized loan is one in which the interest of the loan will be paid by the government up until the time monthly payments are initiated. With unsubsidized loans, the interest is payed by the borrower from day one the loan is issued.
Subsidized loans are awarded based on need to undergraduate students only. Unsubsidized loans are not awarded based on financial need and are available to undergraduate and graduate students. Interest rates are another difference between subsidized and unsubsidized loans, as the former tends to have rates that are roughly 50% lower than the latter. Unsubsidized loans do in general have much lower rates than private loans.
There are maximum amounts per year and for a lifetime. There are exceptions made for some professional programs and for veterinary medicine programs. To learn more about subsidized and unsubsidized loans, visit the Freedom is Not Free website.
Always Apply For Aid If You Need It
Many young people make the mistake of believing that they will not qualify for any kind of government aid because family income is too high. While a good deal of federal aid is determined by need, that is not the only criteria that is considered. With the maze of regulations and rules it is often worthwhile even for those from well-to-do families to apply as there is nothing gained when nothing is ventured. Students from families such as these will often find good deals in unsubsidized loans.
The government of the United States has for a long time considered helping people of all ages gain a higher education a worthy goal, and there are programs to help just about everyone that is willing to take the time to fill out what can be an extensive amount of paperwork.
If you are part of a military family, you need to find out about all of the grants and scholarships that are available to you. Get a better idea of what is available to you by having a look at the Freedom is Not Free website. You can also browse other available scholarships for military families by clicking here. The fact of the matter is grants and scholarships will not cover all of the costs associated with a higher education. If you are taking demanding courses in undergraduate fields such as engineering, architecture, or doing graduate work in law or medical school, your course workload may rule out having part-time job, so a loan may be required.