Student loans are of real help since you can study to any level tension free. Financial aid for student is a real boon fro students. There are mainly two types of loan that students can apply for; Subsidized loan and Non-subsidized loan. Though both these loans aim towards making student education easy helping them financially, their application differs.
Most students opt for subsidized type of loan. This type of loan helps those who need money for higher education. Here the interest payment is subsidized. Unlike other loans, the student does not have to pay the interest during his student life. This loan is guaranteed by the US government and the government takes the responsibility to pay the interest to the lending institute or the finance firm. Besides, the government also makes the pay, when the student defaults the repayment to the lender. The student is granted 6 months of grace period in addition after his schooling or degree, so that he can prepare himself for a job or make a position of himself and begin his repayment. Thus during his student life he is not burdened.
To apply for a subsidized student loan, you have to be an American citizen or an eligible non-citizen. Your university and program plays a huge roll in your eligibility. The applicant has to have a part time enrollment into an accredited education program. Besides he should also be a high school diploma holder. All the Federal loan papers should be filled correctly.
Though the federal government fully supports the student during his education period, the person applying for this loan is scrutinized strictly before being granted the loan. FAFSA (Free Application for Federal Student Aid) is a standard application which primarily determines if the student is really in lack of adequate funding for college. The EFC (Expected Family Contribution) is calculated too.
With Non-Subsidized Loan, the student has to pay the interest during is studying. But the plus point is the student can borrow between 4000$ to 5000 $ per year, which is much more that he can in subsidized category loan.