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Understanding Government Student Loans And Grants
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Understanding Government Student Loans And Grants

Do you hear that? That's opportunity knocking. You might want to answer it. The time to go back to college is now. With unemployment rates across the country refusing to drop, now is the perfect time to go back to school. Although the unemployment rates are high and companies are laying off, there are still certain industries and job professions that are expecting significant growth. The US Labor Bureau is predicting strong growth for many jobs and careers in the next decade. The federal government has alway encouraged Americans to seek higher education. The Obama administration has placed even more emphasis on getting some sort of college degree. Open that door. Here's how.

Student Loans- These types of loans are perhaps the easiest loans to qualify for. If you need to use a student loan, and who doesn't?, to pay for college, chances are you can take advantage of these federally funded loans. The federal government makes available both loans and grants through it's Title IV funing program. There are two types of loans; subsidized and unsubsidized. Subsidized loans will not accrue interest while you are in school. Unsubsidized loans will accrue interest. Currently the interest rate on the unsubsidized loans is 6.8%.

A huge benefit to these loans is that they are not credit based. In other words, to get student loans through govenrment funding is typically very easy. Another great feature is that you will not have to start paying back on these loans until after you have been out of school for 6 months. In addition, you will have anywhere between 10-15 years to pay them off which results in very affordable monthly payment once you have started your new career.

Student Grants-Yes, the government is still providing grant money for students that would like to go back to school. However, the qualification process is quite different from that of a student loan. Because you do not have to repay them, government grants are primarily based on your current income. Tax returns are used to qualify you for grant money. Additionally, the government makes a distinction as to whether you are a dependent or independent student. If you are 24 years of age or older you are considered independent and as long as you don't have a bachelors or masters degree already, are eligible for grant money. You can still be considered independent if you are 24 years old or younger. In this case you must be either married, have children, be in the military, and not have a bachelor's degree. If a student is deemed dependent, his or her parents must be involved in the process of obtaining loans and grants. All the above factors are considered when calculating how much grant money you may receive in a school year.

Whether you are considering a state university or a proprietary college, either one can show you how to get student loans and grants. The doors are always open. You don't even need to knock.


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