how does student loans work?

Question

I never took one out before and i would like to know how they work. so far i only know that student loans repayment does not start until graduation or 6 months after graduation.

my questions are:

1. are the loans affiliated with school? or are they separate private entities ilke citi, chase, etc

2. how does the loan get to me? does it come by check in the mail and i cash it and pay it to the school as if its like my own money?, or do i have to provide proof of the tuition bill first in order to get the loan money.

3. what are the requirements to get a student loan? i am almost done with community college and im going to a 4 yr school in the fall. is it a complicated processs and does it take awhile to get through?

thank you all for your responses.

Answer 1

1. They are affiliated with the federal government and through the school. They are not from private banks such as Citi, Chase, etc.. In some cases you will have to pay back the federal government and in some cases you have to pay back the school.

2. Your loan will first be sent to your school. They will take out tuition and fees. Then they will issue you a check (or direct deposit into your bank account) with the remaining money. You may use the remaining money how you see fit (rent, food, books, etc...). This will happen automatically once you have filled out FAFSA and been accepted to your school (providing the school you are accepted to was listed on your FAFSA).

3. To get a student loan you fill out a form online. It is called the FAFSA.
http://www.fafsa.ed.gov
The lower income you are the more loans you will qualify for.
Unless you are emancipated, 23, or have your own kids your income will be based off your parents as well as you. If you are emancipated, 23, or have your own kids then you are independent and it will based off your income alone (unless married then both). There is no way to tell how much money you are eligible for until you fill out the FAFSA. There is no negative side to filling it out. It is free. They will tell you what loans you qualify for and you can choose to accept or deny them. It will also automatically let you know what grants you are eligible for (money you won't have to pay back).
It is not complicate. It take like 30 minutes online. You should fill it out as soon as possible.

For more information contact a local college/university. Ask to speak to a financial aid counselor. You can do this in person at financial aid office or you can call 1-800#.

Answer 2

definite that's and in case you have not already understand, the transformations between pupil personal loan and pupil help is that pupil personal loan you should PAY back!, in case you won't be able to the overdue prices will rises so becareful with how a lot funds you going to borrow.

Answer 3

contact your local education office and ask for the forms for student loans. they work on the principle of whether your parents can support you and if you get your loan they will get you to pay it back at so much a month when you earn over a certain limit about £10.000 i think.