Four types of Financial aid you should knowSep 22, 2021
- SCHOLARSHIPS: Scholarships are essentially free money to pay for school.
- GRANTS: Grants are given to students who demonstrate financial need.
- LOANS: Loans are funded by governments or private lenders.
- WORK-STUDY: Program offers flexible part-time jobs around student schedules.
Remember, a subsidized student loan, that you could be eligible for through your FAFSA (Free Application for Federal Student Aid) application, means you do not pay on the interest of the loan while you are still in school. The government subsidizes or takes care of that money, while you're a student. https://www.salliemae.com/blog/do-interest-free-loans-exist/
Who gets the interest on a federal student loan?
If you qualify, the government pays your interest while you're in school, so your balance doesn't grow. Once you graduate, though, the interest becomes your responsibility. Unsubsidized loans, meanwhile, charge interest from the day the loan is disbursed. https://studentloanhero.com/featured/how-student-loan-interest-works/
Do student loans have to be paid back after graduating from college with interest?
The Grace Period
For most federal student loan types, after you graduate, leave school, or drop below half-time enrollment, you have a six-month grace period (sometimes nine months for Perkins Loans) before you must begin making payments. ... You can choose to pay the interest that accrues during your grace period. https://studentaid.gov/manage-loans/repayment