A subsidized loan is offered by the government to students who want to enroll in a college program but do not have the financial means to afford its cost. These loans are granted to students on need-basis. The eligibility of these loan programs is determined by the information that the students provide in the Free Application for Federal Student Aid. There are several benefits of subsidized student loans. However¸ the major advantage of this loan program is that the government is responsible for paying the interest while students are enrolled in college.
Why Should I Apply For Subsidized Loans?
By applying for a subsidized loan you can get money for college without any problem. The low rate of interest of these loan programs allow you to repay it with ease. Also¸ subsidized loan has more flexible terms of repayment which enable you to repay the borrowed money at your own convenience.
What are the Types of Federal Subsidized Loan Programs?
Subsidized loans include:
Subsidized Stafford Loan – You can get Subsidized Stafford loans on the basis of need. The interest rate of these loan programs is 3.4%. You can start repaying the borrowed money 6 months after graduating in this direct subsidized loan.
Federal Perkins Loans – Perkins loans are offered to those who demonstrate extreme financial need. The interest rate of these loan programs is 5%. You can start returning the borrowed money 9 months after completing your studies.
How Much Can I Borrower Through Subsidized Loan?
The amount you can get by means of this student loan program varies. There are a number of factors that can help to determine the precise amount you can avail. These many include:
· year in school
· financial need
· status (dependent or independent student)
Generally¸ you can get cover for tuition¸ books¸ travel and other related expenses through subsidized loan.
How Can I Apply For A Subsidized Loan?
To apply for subsidized loan¸ you need to complete the FAFSA. Getting in touch with the financial aid office of your college can also be helpful to apply for these student loans.
Sources:
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