COLLEGE LOAN BASICS
Purpose
The simple answer is that college loans is money lent to you to help you afford college and must be paid back over time. College loans can be critical in affording college but can potentially be financially strenuous in your future.
First Steps
As soon as possible talk with your family, and calculate your family's financial contribution using FAFSA (the free application for federal student aid), also look at the schools you plan on applying to, and often there is info on websites about their cost. Generally, state colleges within your state (where you pay in-state tuition) and private schools that meet a high percentage of demonstrated need (85%-100%), are the most affordable. Community colleges can also be a great and cost-effective way to pursue higher education.
Another key takeaway is that you should apply for as many scholarships as possible, there are many amazing scholarships available to high school students, and a quick google search will show you a great selection.
Types
There are many different types of college loans and they are as follows:
Need-based: based on your family's income, usually given to lower-income students
Federal: Federal College loans are subsidized loans from the government
State: your home state might offer a college loan program and it is a good first step to see what your state offers.
Private: from a private company or bank, and are not subsidized
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College loans, which can vary from a few thousand to well over $250,000 in cost, depending on how much you need to borrow, usually account for the difference between the cost of completing a degree and the amount you or your family can afford. Generally, student loans are structured to be paid off in 20 years, but depending on the amount, it can be more or less. College loan payments also only start after you leave college, and most plans do not require you to pay while enrolled. In terms of price, which is measured in interest rate, there is a large variance. Generally speaking, federally subsidized loans are around 2.75%, and private loans are around 5%. The higher the percent, the more you must pay, and generally speaking, federally subsidized loans can be the most affordable option for most people.
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Resources
There is a great wealth of information, but a good step is first filling out the FAFSA, which can tell you how much very approximately you can afford to pay.
https://studentaid.gov/h/apply-for-aid/fafsa
Another amazing resource is studentaid.gov, which has great information on college loans, and specific information on different circumstances.