Not many people can get through college without incurring some form of debt. Even with full academic scholarships there can be unforeseen expenses that can mean the difference between a semester of studying and one spent working a part-time job. The sad reality is that most parents never save enough money for their children to attend school. There is money available but only if you make a certain amount or less. Most people must take out student loans in order to attend school. There is a lot of information to process about student loans. If you have questions regarding student loans, this article is for you.
What are they used for?
Student loans can be used to pay for anything school related. They can pay tuition, lab fees, athletic fees and even meals. If a student is carrying a full semester of courses and cannot work full time due to school, the loans can be used to help with living expenses and other miscellaneous bills. A word of caution: student loans have to be paid back so do not get in over your head. It is very easy to get this 'easy money' and forget that it all must be paid back with interest.
How do I apply for student loans?
The first thing you need to do is go to the college, university or vocational school and enroll. The second item on your "to do" list is to fill out a Federal Student Aid Application. It will take several weeks for the application to be processed and notification of monetary award sent to the school and yourself. This is not something that can be rushed so make sure to allow enough time by doing this as early as possible.
How much money should I take out?
This is a hard question to answer. Ideally you should take out only what you need to cover tuition, fees, books and living expenses. There are a couple of questions you need to ask yourself. Are you going to be working? If so... how many hours will you be able to work after you factor in class time and study time. If you are involved in collegiate sports you may not have the time to work. Will you be receiving any aid from anyone else such as spouse or parents? Try to take out just what you will need. Remember that you will have to pay all of this back so let that be your guide in determining how much to take out in loans.
When do I have to start paying the loan back?
For Federal student loans you do not have to begin repaying until six months after you leave school. This is considered a grace period. For all other types of loans you will begin repayment within sixty days of your first disbursement. That means you will be paying at least the interest payment while you are enrolled. That is why so many people go with Federal student loans over private loans.
I'm unemployed and my student loans are due, what can I do if I can't make the payment?
The first thing you should do is contact your lender. Explain to them the situation. For Federal loans you can file for a forbearance that will delay when you must make payments. They have the option in granting you this privilege. Always make sure and keep in contact with your lender. Keep them apprised of your financial situation and try to begin repayment as soon as possible. For other types of loans you will need to contact your bank or the company who gave you the private loan. They may or may not have a program to help you through your financial rough spot.
Related Articles
Paying Off your Credit Card Debt
By: Trevor Taylor | 04/11/2007 | Finance
Although it is always a possibility that a person could get into financial difficulties with their credit card account, due to unforseen circumstances or unavoidable personal events, most people facing credit card debt problems have only themselves to blame..
'freeload' your Way to a High Credit Score
By: Vince Shorb | 08/12/2007 | Finance
Discover how you can supercharge your credit rating by being a 'deadbeat'. Be the credit card company's worst customer and enjoy your excellent credit rating.
Bad Credit Mortgage Refinance
By: Jas | 19/03/2008 | Finance
If you are looking to refinance your mortgage but believe you will be unable to because your credit may be challenged by late payments, bankruptcy, charge off's, or unpaid medical bills to name a few, don't worry, there is hope.
Buying a Car - What is the Best Finance?
By: Jas | 19/03/2008 | Finance
Your car is one of the most expensive purchases you will ever make. Probably the only thing you will buy that costs more than your car is your house. You wouldn't just accept the first mortgage you came across, and likewise you shouldn't just accept the first vehicle financing option that comes your way. You will have a lot of options in how to finance your car.
Create and Maintain a Budget - Finance 101
By: Jas | 19/03/2008 | Finance
The first step to avoiding the troubles of financial debt is to create and maintain a budget. It's not as intimidating as it sounds, don't worry.
Ethical Finance: Who Benefits From our Spending?
By: Jas | 19/03/2008 | Finance
Who Benefits From Our Spending?
Finding the Right Time to Refinance a Loan
By: Jas | 20/03/2008 | Finance
If you've been thinking about refinancing a loan, you might wonder whether or not right now is the best time to do so.
Expensive or Cheap Loans = Money Lost or Saved
By: Francis Mwendo | 22/01/2007 | Loans
When you decide you require a loan, you must determine how much you really need? Also budget your expenses and know how much you can afford to pay in monthly instalments as well.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Car loan after Bankruptcy
By: bikerbabe883 | 06-08-2008
How should I approach this issue on getting a loan for a car, what would be the best loan possible, I recently filed for Bankruptcy in January08, no debt now, I have a car that is a 96 saturn paid for and don't want high payments, own a home and pay utilities that's it, i have access to a Z-plan for Ford products, can anyone help?
HELP!! I have over $75,000 in credit card debt!!
By: jlbell | 30-07-2008
For the past year and a half, I have been unemployed and have lived off of inheritance and money borrowed from credit cards (majority at 0% interest). I have started a new business and should see a profit during the next 60 days, however in the meantime, I have racked up $75,000.00 in credit card debt.
I have over $400,000 in equity in my house. Is it possible or is it smart to take some of this equity and pay off the credit cards? The 0% interest free are expiring fast and I have always had a great credit score, but with this much debt, it has killed my credit score.
HELP!! I need advise on what to do!
Thank you!!
Pay back credit card
By: Loria Lester | 27-07-2008
I have myself in a bad jam. I remodeled my house, got taken by some rotten contractors & now can't pay all of my credit card debts. I also had 4 mini strokes in this time frame & so am having trouble going to work. I pd all the bills I could, when I got money from the sale of some property, but have two major credit cards I can't begin to pay off at the rate they have me at. They raised my interest rate when I got behind, so now I couldn't pay if I wanted to. I only get $567. a month & want to make a deal with them to pay them back, but how do I deal with them, when they seem to not want to listen when I called two months ago. What can I do!
Loria Lester
What is a place that i can get a personal loan ...
By: Jas | 25-07-2008
what is a place that i can get a personal loan with no credit(high rish lender), excluding those payday advance people
My tenants signed a lease for three people to live ...
By: cristi1971 | 25-07-2008
My tenants signed a lease for three people to live in the property, now they have moved in another family. Can I evict them?
Co-signers for school tuition loans
By: mcardle | 22-07-2008
what are the laws concerning co-signers on school loans
Q&A Powered by:
More from Keith Lee
How Parents Can Help Their Teens with Eating Disorders?
By: Keith Lee | 03/09/2008 | Diseases and Conditions
Teen eating disorders can cause a family to crumble at its foundation. Parents should be well aware of the signs and symptoms that accompany dysfunctional eating habits.
Prepaid Credit Cards - Parents, This Could Be A Better Choice For Your Child!
By: Keith Lee | 25/02/2008 | Credit
Parents should consider giving their children a Prepaid Credit Card instead of Unsecured Credit Card as there is no worru about your children going over the limit.
Bank Credit Card - How To Get One As Your Financial Back-Up?
By: Keith Lee | 25/02/2008 | Loans
As a student, you can apply for a bank credit card and use it to pay for your day to day expenses, as well as to use it as a financial back-up plan for emergency, but remember to make your payments on time and always try to keep a minimum balance that you can pay off.
Credit Card - Should Student Apply For One?
By: Keith Lee | 25/02/2008 | Loans
Student could use Credit Card to help to pay for his/her study expenses but must use it wisely and not fall into Credit Card Debt.
It Is Extremely Important That You Know The Bankruptcy Law Before Filing
By: Keith Lee | 24/01/2008 | Finance
Being unable to pay back debts can lead people into filing for bankruptcy and the laws in this regard are very clear that creditors may not contact the borrower, after the borrower has filed for bankruptcy, though some creditors feigning ignorance of such filings may continue contacting the borrowers.
How A Federal Perkins Student Loan Can Help To Finance Your Study?
By: Keith Lee | 19/01/2008 | Finance
Most college graduates make better salaries than their peers who only finish high school so the students who take advantage of the study loans will usually recoup the costs in a few years after they start working and repaying the loans.
How To Get Quick Cash Within 24 hours Through Payday Cash Loan
By: Keith Lee | 19/01/2008 | Personal Finance
Today, with the rapidly growing popularity of the Internet, Payday Cash Loans can be found online. For many customers, this is the majority convenient way to get a certain payday loan within 24 hours.
How To Clear Your Debt Through Bankruptcy Student Loans?
By: Keith Lee | 18/01/2008 | Finance
If you want to file bankruptcy student loans, you need to prove that you are unable to pay off your student loan either according to repayment schedule, or in the coming years.
Finance 
