Subsidized Student Loans

Student Loan Help

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.

Uses of subsidized student loans

As mentioned above, the government restricts what the loan may be used for.

Some of the uses of the government dictates are:

• Paying for tuition
• Accommodation costs
• Paying fees
• Dependent childcare expenses in case you have small children
• Transportation costs
• Renting and purchasing a computer for study purposes

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.

Categories of subsidized student loans in Canada

Subsidized student loans are given to students who fall under the following categories:

• Students form Low income families: if a student comes from low income family and qualifies for a federal student loan after meeting all he eligibility requirement he will be entitled to get $250 per month at the beginning of the year and he other half later. These will accumulate to about $3000 per academic year. This grant is made available to the student for all the years of the undergraduate years provided its not more than 60weeks
• Students from middle income families: if you hail from am idle income family and you qualify for the loan having met the specific eligibility for the grant then you will be entitled to $100 per month of your study, half at the beginning and the rest at midway of your study all totaling to $1200 per academic year. The grant will fund you through your undergraduate program provided it doesn’t exceed a maximum period of 60 weeks
• Students with dependants: if you are a student earning low income and you have children under 12 years depending on you and you qualify for the federal loan, you will receive $200 per month for each child commencing at the beginning of your study period

To enjoy such privileges you should posses a certificate of Eligibility and Confirmation of enrollment duly filled by your educational institution