Student Loans Essay

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There are several ways a student can make to reduce the amount of loans borrowed. Your first option is the option of forebearance, it is available for up to three years, with interests accrues.
While in school, your loans are deferred, as to help you reach your goals. To avoid defaulting, keep in mind, you have to maintain your financial options. In today’s society and economy the more you have to borrow is more you have to pay back.

Your second option is loan consolidation. This can reduce the amount borrowed because of lower monthly payments and also lower plus lock in a lower interest rate.
When enrolling into college I was advised by my financial advisor to borrow the minimum available as to keep my finances down. Pell grants help to get you tuition and supplies you need to excel in your college courses. Loans are aid to help with college costs that must be pepaid. Loans make up 54% of financial aid. Loans may be need- based or not need- based. Need based Loans tend to have a lower interest rate. Some loans do not accrue interests until after graduation. Loans may be in the name of the student or of other family members. (ex. Likely parents). The federal Perkins loan is a low interest loan for students who have financial need. There is no loan fee. There is a grace period, and repayment begins either nine months after you graduate, leave school, or when you go below half time status.

Direct loans are also known as the William D. Ford federal direct loan program. FFEL is the federal family education loan program. Each set of loans include the Stafford loans for students. The direct loans goes directly from the federal government to the school, whereas the FFEL funds goes through private lenders. But students cannot receive both kinds of loans for the same enrollment period. Subsidized loans are based on financial need and have a built in grace period before repayment during which interest is not charged. Federal and state grants are...
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