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What types of loans are available to students?
Student loans can be made to students or their parents. Private loans are available through banks, credit unions, and other lenders. They can be structured in many ways, and families often use a home equity loan or personal line of credit to help finance college. In contrast, federal loans come from programs supported by the United States government, and they typically have tighter restrictions, including financial need, caps on the amount one can borrow each term, and required proof that a student is taking the minimum credit hours per semester. The interest rate is the same for subsidized and unsubsidized Federal Direct Loans, so the primary difference is how interest is charged while the student is in college written on https://domywriting.com/blog/guide-for-students-with-visual-impairments/. Subsidized loans are intended for students with financial need. While the student is taking classes at least half time, he or she is not charged interest on the loan; instead, the interest payment is subsidized (paid for) by the federal government. Unsubsidized loans, however, do not have any requirement of financial need, and they do accrue interest while students are in college.

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Asked by Monday Sep 21st 2020 in Student Loans
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