How to Take Out a Student Loan: A Step by Step Guide

1. How to Take Out a Student Loan: A Step by Step Guide Aid for students requiring help in financing their education can come from different sources like the Federal Government, the school or university, and outside organizations that offer scholarships and grants through other organizations like ​Queensborough bank​. Some of the most common types of financial aid programs and services that students can apply for include: ● Federal Work-Study Program The federal work-study program is an employment/educational program that many universities and colleges participate in. This particular program enables qualified students to pursue their degree while at the same time holding a part-time job, which can be located on or off campus. Employment may take place either during the academic year or the summer months, including vacation periods. Students wishing to participate in a work-study program must prove eligibility based on their financial status. ● Federal Direct Loans There are two kinds of federal direct loans that eligible Queensborough students can take out. Generally speaking, the federal direct loan program enables low-interest loans that total $31,000 for students classified as ‘Dependent’ and $57,000 for those classified as undergraduate work. To apply for a federal direct loan, a student must complete FAFSA or Free Application for Federal Student Aid. This application determines a student’s eligibility for the loan program. Colleges and universities can provide you with the Direct Loan Request Form. If you are first time borrower, you must likewise complete an MPN or Master Promisory Note and Entrance Counseling. It is possible to increase your loan amount within the same academic period, should you need additional support. Loan processing depends on your eligibility for the particular program you are applying for. ‘Independent.’ This financial aid covers

2. Federal Student Loans come in subsidized and unsubsidized form. In a subsidized student loan, the interest is paid by the Federal Government. In unsubsidized student loans, on the other hand, interest is payable by the student through the duration of his or her schooling, otherwise the interest amount is added to the total loan. There are different repayment options that students can take advantage of, depending on their ability to pay back their loans. Much like personal loans and ​mortgage loan services​, taking out a student loan is often a necessary action, especially for students who can’t afford to pay for their education on their own. A student loan can be instrumental in your pursuit of your dream degree—one that will bring you a brighter future and a rewarding career.