What exactly is a "LOAN"? (for college paying)
Is it like borrowing money from the bank and paying it off later?
Please explain to me throughly and as simply as possible.
2007-10-21 12:51:12 · 5 answers · asked by ♥ I WISH♥ 5 in Education & Reference ➔ Higher Education (University +)
Well Teadles, money and paying is the last thing on my mind. Fortunately, I dont have to worry about financial problems like many others out there.. I just wanted to know what it was.
2007-10-21 13:06:20 · update #1
How much simpler can it get? A loan is a loan whether for paying for college or paying for a car. You borrow money and then make payments on it.
Many college loans don't require that you start making payments until you have graduated from college (or stop attending) but many do accrue interest while you are in college.
A loan is the opposite of a grant. Grants are money that you don't have to repay.
2007-10-21 12:57:10 · answer #1 · answered by CoachT 7 · 0⤊ 0⤋
Yes, that's exactly what it is.
You borrow money from the bank, and pay it off over time while they charge you interest on it.
Interest is the "cost of borrowing money". Its how the bank makes a profit from giving you the loan. They charge you a percentage (usually like 6%) of the remaining money you still have to pay off every month or whatever.
I think with student loans they don't charge interest until you've graduated.
2007-10-21 19:55:18 · answer #2 · answered by Anonymous · 0⤊ 0⤋
basically it is borrowing money but with interest (probably different interest rate for different colleges) usually you pay them back after you are done with your 4 or w/e years of college. but remember there is interest
2007-10-21 19:54:02 · answer #3 · answered by §¤ŅG.¥ 3 · 0⤊ 0⤋
The bank pays for your education. After you graduate, you pay them back...more than what they paid.
2007-10-21 19:55:33 · answer #4 · answered by auburngirlsc 3 · 0⤊ 0⤋
Your going to college and don't understand the basics of a loan ? wow !!!
2007-10-21 19:59:43 · answer #5 · answered by Teadles 2 · 0⤊ 1⤋