Can Someone Explain To Me How Student Loans Work?
I don’t know anything about loans and I need some help. I want to go to make-up designory school in New York. It cost about $15,000. I’m most likely living on my own. Can I get money to help with housing cost and with school? The loan that the school has is Sallie Mae. CAn anyone give me some info on it? Also, I have no credit so can I still get a loan? How much do they give you adn how much do you have to pay each month? On the website it says something about repayment loans up to 15 years, does this mean you have to pay the loan off within 15 years? What happens if you don’t? What happens if you don’t have a credit worthy cosigner? Do they have to be living with you?
Thanks for any help you can give me!
The loan has to be paid within a period if you don’t they will call you and harrash you. I found interesting information about your answer, college loans with low interests, scholarships, college grants here. http://all-student-loan-consolidation.bl…
Student loans are loans you take out to pay for the cost of your school. The money is generally sent to the school and covers tuition, books, supplies, etc. The best student loans are FEDERAL Student Loans, called Stafford Loans. You apply for these loans by going to http://www.fafsa.ed.gov. Federal loans DON’T require a cosigner. If you don’t pay the loans back, you will be in “Default”. The publication I’m attaching has a good section on what happens if you go into default. Basically, they can garnish your wages (take a part of your paycheck against your will), and take your income tax return as well as other things.
However, some schools, (perhaps the one you are mentioning) aren’t recognized by the government to get free grants or federal loans. Which means you have to take out private loans. I would be VERY leery of these… and scrutinize the school very closely. There has to be a reason the Dept of Education doesn’t give them federal money. I’m attaching a good publication about loans-in the back is a dictionary of terms that explains all the words you are asking about. Private loans have a very high interest rates – which means the bank or agency that is letting you borrow the money is charging you for the use of their money. You borrow 15,000 now. And over the course of 15 years, pay back more… sometimes much more…..35,000. And have very high fees associated with them. First link is to see if your school is federally recognized. Second link is the dictionary.