1.
What Are Student Loans?
Student loans are funds borrowed to pay for higher education costs, to be repaid with interest.
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2.
Types of Loans:
Federal loans offer fixed interest rates and flexible repayment options, while private loans may have variable rates. .
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3.
Federal vs. Private:
Federal loans often have better terms and protections compared to private student loans.
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4.
Applying for Loans:
Complete the FAFSA to apply for federal student loans and explore private loan options through lenders.
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5.
Interest Rates:
Federal loan interest rates are fixed, while private loans may have variable or fixed rates based on credit.
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6. Repayment Options:
Federal loans offer multiple repayment plans, including income-driven options to fit your budget.
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7.
Grace Period:
Most federal loans provide a six-month grace period after graduation before repayment starts.
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8.
Deferment and Forbearance:
Temporary postponement of payments is available for federal loans in cases of financial hardship.
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9.
Loan Forgiveness:
Certain federal loans offer forgiveness programs for public service workers or teachers.
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10.
Managing Debt:
Budgeting, making extra payments, and exploring consolidation can help manage student loan debt.
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11.
Loan Consolidation:
Combine multiple federal loans into one with a fixed interest rate for simplified repayment.
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12.
Avoiding Default:
Stay on top of payments to avoid default, which can negatively impact your credit and financial future.
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