Every University will set their academic schlorship at
different levels. At some schools, your SAT score
may get you a $10,000 scholarship, while at other schools
the same SAT score may only get you a $5,000 scholarship.

Universities will look at your Financial Aid Form and
make a determination based on Need Basis.
Every University offers Student Loans

There are 2 types of student loans:

1) SUBSIDIZED - basically the student doesn’t pay
any interest. You don’t have to pay anything back
or make any paymets until after you graduate and
finish all your degrees, whether Bachelors, Masters
or PhD… OR you leave school.

If you don’t finish college, you have to start paying
the loan back after 6 months.

It’s called Subsidized because it is an interest free loan
until you graduate and have to start paying it back.
Right now the rate is 6.78%.

Let’s assume that a student borrows $10,000 for the next
4 years in school. After graduation, the student owes the
government $10,000.

Let’s also assume the student has a windfall of money and
decides to pay off the loan. On the SUBSIDIZED loan, the
student would pay off $10,000 and the loan would be paid off
in full.

In essence, the student had an interest free loan for the 4 years.

2) UNSUBIDIZED - loan is for a student that has no financial means.
However the student can still get a loan. The difference from the
subsidized is that the interest accrues while the student is still
in school on that loan. That’s the major difference.

This entry was posted on Monday, December 18th, 2006 at 10:02 pm and is filed under Student Loans. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.