“Grants vs. Loans” from Page 1
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The Federal Supplemental Educational Opportunity Grant is a program for undergraduate students that display an even greater need financial need. These students have already qualified for the Pell grant but require further assistance to pay for school.
A student can receive an additional $100 to $4,000 each year through the grant. A student loan is another option that can help pay for education. It will help cover college tuition as well as other campus fees such as textbooks.
There are many different loans offered to interested students. Unlike grants, loans have to be paid back. The amount of time a student has to pay it off depends on the loan. A student may have anywhere from six months to three years to pay the loan back.
There are two different types of student loans available, federal and private. The federal government supports federal loans and a credit union or bank supports private loans.
It is more common for people to apply for federal loans than private loans because they are more flexible.
The five federal loan programs available are; the Federal Perkins Loan, the Direct Subsidized Stafford Loan, the Direct Unsubsidized Stafford Loan, the Direct PLUS Loans for Parents, and the Direct PLUS Loans for Graduate and Professional Students.
These programs all have a borrowing limit.
Millions of people struggle to pay college tuition needlessly when there are programs and funding available to them. However, it is important to research and explore every option before making a decision.
For more information on loans and grants: http://www2.ed.gov/programs/fpg/index.html