Student Loans Vocab

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What is a student loan?

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Money you borrow to help pay for costs associated with school, with the expectation that you will pay that money back in the future.

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Who can qualify for a private student loan?

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Students enrolled in eligible programs with good credit or a co-signer.

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What can student loans be used for?

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Student loans can be used for tuition, books, supplies, and living expenses.

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What is an unsubsidized loan?

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Loans distributed that are not based on financial need; you are responsible for the interest from the time the loan is disbursed until it is paid in full.

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What is a subsidized loan?

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Loans distributed based on determined financial need; these loans do not accrue interest while you are in school at least half-time or during deferment periods.

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What is the difference between subsidized and unsubsidized loans?

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Subsidized loans are based on financial need and do not accrue interest while in school, while unsubsidized loans accrue interest from the time they are disbursed.

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What is a grant?

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A form of financial aid that does not need to be repaid, often based on financial need.

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What is a scholarship?

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A financial award given to a student based on academic or other achievements to help pay for education expenses.

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What is tuition?

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The fee that colleges and universities charge for instruction and other services.

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What is a co-signer?

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A person who agrees to take responsibility for a loan if the primary borrower fails to repay it.