Poor Credit Student Loans » subsidized student loans http://www.mypoorcreditstudentloans.com Do you really need a loan? Tue, 17 Nov 2009 20:32:17 +0000 http://wordpress.org/?v=2.8.5 en hourly 1 What is a Subsidized Loan? http://www.mypoorcreditstudentloans.com/what-is-a-subsidized-loan http://www.mypoorcreditstudentloans.com/what-is-a-subsidized-loan#comments Sun, 15 Nov 2009 21:55:56 +0000 poor student http://www.mypoorcreditstudentloans.com/?p=369 The number of different lending agencies and types of student loans available can make putting your financial aid package together a complete nightmare.  Considering that most students entering college out of high school have little experience with finances, it can quickly become overwhelming to have to make decisions about different lending companies, let alone different types of loans.  The best thing you can do for yourself and your financial future is to research your options before you make any decisions.  Here is some general information on getting a subsidized loan.
Subsidized loans are generally available through the government in the form of a Federal subsidized loan.  If you’ve begun looking into financial aid, then chances are you’ve already seen the term ‘Federal Stafford Loan’ mentioned in some of your research.  The Federal Stafford loan is available in two forms:  as a subsidized loan, and as an unsubsidized loan.
Most loans are unsubsidized.  That means that they will start building interest the moment they are given to you.  Banks and other lending companies are out to make money, and the way they do that is by charging interest.  This doesn’t mean they are all bad, or trying to cheat you, but keep in mind that as little as a quarter of a point reduction in your interest rate can save you thousands of dollars over the long term.
A subsidized loan, however, does not earn interest right away.  The terms of the loan dictate when interest will start to accrue, and for student subsidized loans it is usually 6 months after you graduate.  The Federal Stafford subsidized loan is available to students who meet a certain income level criteria, and you can apply for it every year that you are in school.  It won’t cover all of your education expenses, but it is enough to help, and it has very low interest rates.  It is definitely worth checking into, and the income levels are really quite fair.  Many students who think they won’t qualify because their parents earn too much money end up securing a Federal Stafford subsidized loan.
If you’d like more information on how to apply for a subsidized loan, you can check online.  Many lending companies will even let you apply online, and give you a decision in just a few days!

]]> http://www.mypoorcreditstudentloans.com/what-is-a-subsidized-loan/feed 0 Subsidized Student Loans http://www.mypoorcreditstudentloans.com/subsidized-student-loans http://www.mypoorcreditstudentloans.com/subsidized-student-loans#comments Sat, 09 Aug 2008 07:25:25 +0000 poor student http://www.mypoorcreditstudentloans.com/?p=6 Subsidized student loans should be your aim if you need to get a loan.

What does it mean to be subsidized?

It’s simple:

  • Subsidized Loans – Government pays the interest on the loan while you are a student
  • Unsubsidized Loans – You pay the interest on the loan while you are a student

Obviously, having the government pay the interest while you are a student does relieve some stress in the life of a student.  And heaven knows that students don’t need more stress:)

But don’t forget that you have to pick up the interest once you graduate from school.  And I highly recommend paying off the loans as fast as possible so that you don’t feel burdened for years.  One way to make extra money to help pay down the loan quicker is by taking 10 minutes a day taking free online paid surveys.

Good luck in your student loan endeavors.

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