Attending a college or university like Kean can be a life-changing experience for most undergraduate and graduate students. In some cases, however, this experience may be a difficult one to partake especially for students who can not afford the cost to attend the institution. For students in search of financial aid, there are various types of financial assistance available, such as grants and scholarships, which are available through the financial aid department located on the first floor of the Administration Building. Student loans are another type of financial assistance that are available to students, and in many cases, help students stop worrying about how to pay for the expenses of attending the school and focus more on their education which may often lead to a rewarding career. Focusing on education and not worrying about how to pay for the expenses of attending school is not the only advantage of student loans. Though the loan must be repaid and it is advised that the loan be paid back quickly, repaying the loan is not done until after the student graduates. There is usually a grace period of six or nine months before the loan must be paid back. This grace period gives the student a chance to find a job. If more time is needed, there are also a variety of deferment payment plans, in which the payment of the loan can be deferred for a number of years or repayment extension plans that are offered with the loan. These loans are paid by the federal government and the two major forms of student loans are the Federal Direct Stafford Loan and the Federal Perkins Loan. The Federal Direct Stafford Loan can be subsidized (need-based) or unsubsidized (not need based). A combination of both loans is available for students, but the amount of the loan granted is limited by the grade level of the student enrolled in the school. The Federal Perkins Loan is a need-based loan and is dependent upon funding availability. The loan offers an amount of up to $1200 per academic year and the deadline to fill out the application for the loan is March 15. More information both these loans can be found at http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp.
Many student loans also have low interest rates. In the case of the federal subsidized student loan, no interest is counted before graduation. For the unsubsidized student loan, the interest is counted during enrollment in the school, and in both cases this amount is paid after graduation. The prime interest rate of the loan along with the student's credit history, determines the interest and a small percentage would be added to the prime rate if there is an issue with the credit history. For students with little or no credit history, the interest rate starts off at a basic prime rate. The interest rates are adjustable. Loans can help to build a credit history which is checked in situations like buying a home or a car as well and making payments on time can often lead to reduced interest rates for the student.
There are many other types of loans available for students and these types include parent loans (i.e. the PLUS loan) and private loans (also know as the alternative student loan). The parent loan is taken out by parents for the student who is a dependent and repayment of the loan is the responsibly of the parent. This loan is also available to students who do not qualify for other types of financial assistance. Private loans are not part of the federal government and do not require federal forms to be filled out. They are offered by private lenders and to be eligible for private loans however, the student's credit score is checked. For more information about these types of loans and other types of financial aid assistance, visit http://www.kean.edu/sfs/fa_home.html.
