As students prepare to go to university or college, most do not have the finances available to pay their tuition, expenses and other costs. It is important to make yourself knowledgeable when it comes to student loans and look into the many possible sources available for funding your education. Most consider private loans from banks and other financial organizations unsubsidized because the government is not paying the student loan interest. On a subsidized student loan, the government pays all the interest on the entire student loan until paid off. Subsidized student loans are for students that severely lack adequate funding and are in great need of financial aid. These federally funded subsidized student loans pay the interest fees, unlike private or unsubsidized student loans that do not pay the loan interest for the student. A couple of excellent sites on this topic are the Federal Student Aid website and the FAFSA website.
Provided by the federal government, the Stafford loan is one of the first and most popular sources for student loans. When you first take out a Stafford unsubsidized student loan, there are some fees attached, although filling out the FAFSA application form or Free Application for Federal Student Aid is free. The Direct Loan from the U.S. Department of Education allows students to borrow from them directly. To be eligible for an unsubsidized Stafford Loan, there are several eligibility requirements, such as being a United States citizen or having a legal social security number. A student must attend a college or university full or half-time, be enrolled in an eligible certificate or degree program and maintain an acceptable academic education . To qualify for an unsubsidized student loan, applicants require a GED, high school diploma, or must pass an ABT or Ability to Benefit Test. Males between the ages of 18 and 25 must also register with the U.S. selective service.
Even after applying for several student loans students may find they still require financial help. This is a good time to consider an unsubsidized loan such as Stafford. Never awarded because of financial hardship, any student is eligible to apply. On a Stafford unsubsidized loan, interest is charged from the time they dispense the loan until it is completely paid off. There are other options available and it is possible to have the payments deferred until the student graduates. Once you have received your unsubsidized student loan, spend it wisely, as it is not free money. After a student graduates, it usually takes many years to pay off student loans.