Federal and private student loans are available students in the USA. They are authorized under Title IV of the Higher Education Act. Such loans are made available o students of higher institutions like colleges and universities. Such funds are disbursed directly to the respective institutions where they help to supplement personal and family resources, bursa scholarships, and grants and even work study.
Student loans can be subsidized or also unsubsidized by the government depending on how needy a student is. However the government dictates what the loan may be used for.
As mentioned above, the government restricts what the loan may be used for.
Some of the uses of the government dictates are:
Subsidized or unsubsidized loans are based on the eligibility of the applicants which is determined by the federal government. Those loans given through the Direct Subsidize Loans program, students are capable of borrowing up to $8500 very academic year. The interest that accrues or such loans while the student is still studying will be taken care of by the federal government. The student will take care of the interest that accrues after graduating and the repayment period has commenced.
Under the Unsubsidized Loan Program, the students can apply p to $20,500 and the student will be responsible for the interest that accrues on the loan. The loan can be repaid while the student is still in school or after graduating when repayment commences depending on your convenience. Repayments usually commences after graduating given the six month grace period. One may choose to defer the payment thanks to the consolidation loan program. Federally subsidize loans are absolutely interest free while you are still a full time student. The interest starts to accumulate immediately you cease being a full time student.
Subsidized student loans are given to students who fall under the following categories:
To enjoy such privileges you should posses a certificate of Eligibility and Confirmation of enrollment duly filled by your educational institution