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Student Loans Offer Financial Aid


Student loans are well worth the investment, as college educated workers earn considerably more in their lifetime than those with only a high school education. College graduates will also experience less time unemployed. Student loans are a valuable solution when funds for education costs don't meet the need.

There are many types of loans for students needing to pay for their college education. Low interest federal student loans are available to supplement other sources that cover college costs, such as grants, scholarships, work-study, and family contributions. Perkins, Stafford, Parent PLUS, and Graduate PLUS loans are modest federal student loans guaranteed by the U.S. Department of Education and handled by various financial institutions.

Subsidized Perkins and Stafford student loans are granted to students with financial need, and interest is paid by the Federal government while the student is in school. Unsubsidized Perkins and Stafford loans accumulate interest while the student is in college. Both Perkins and Stafford college loans have a six month grace period after the student graduates, at which time students become responsible for repayment in monthly installments.

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