Very few students today can afford to finance their education entirely on funds they have accrued and some help from their families. Student loans are an extremely valuable source of financing that will be available to you as a court reporting student. There are four different types of loans and you should be sure and learn the differences between all of them.
Perkins Loans are federal loans that are available for low-income students. Normally, to qualify family income has to be below a certain level to show that there will not be enough help from your family to help pay toward your school expenses. The interest rate on a Perkins Loan is set at five percent (5%). No interest at all accrues while you are in school. Repayment begins no later than nine months after you graduate or leave school. There is a ten year repayment period.
There are Subsidized Stafford loans that will be available to you. With a Subsidized Stafford loan you will have a set interest rate. The government will pay all interest that accrues while you are in school. Repayment usually begins six months after you either graduate or leave school. This is a very advantageous loan due to the fact that accruing interest during school years is paid for you. The repayment period is normally ten years.
You may also qualify for Unsubsidized Stafford Loans. The interest rate is normally fixed on this type of loan just as with the Subsidized Stafford Loan. With an Unsubsidized Stafford Loan, interest does accrue while you are in school. If it is not paid before repayment is scheduled, the interest will be capitalized and added to the balance of your loan before repayment begins. Repayment is set to begin six months after you graduate or leave school. Ten years is the normal repayment period.
A final type of loan that you can apply for is a Plus or Supplemental Loan. Plus loans are normally obtained from private institutions. Interest rate is variable and is determined in large part by your credit score. The better credit score you have will mean you can obtain a lower interest rate. Interest, again, accrues while you are in school and will be capitalized if not repaid before the repayment schedule begins. These types of loans should be scrutinized closely before signing any legal document. Determine if the interest rate is fixed or variable. Check for any penalties for early repayment. Make sure that the interest rate you will be charged is not overwhelming.
Student loans for court reporting students are in most cases a necessity. Just because you have to borrow the money to complete your education does not relieve you of doing serious investigation into every student loan that you are offered. Do not fool yourself into thinking that all school loans are the same. They definitely are not.
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