How student loans work and how to avoid scams

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Some companies promise to help you reduce your student loan debt for a fee. But there’s nothing those companies can do for you that you can’t do on your own for free. And some companies that promise to relieve your student loan debt are scams. It is illegal for companies to charge you before helping you. Here are some other things to know about how student 직장인대출 work and how to avoid scams.

How to pay for school

There are several types of financial aid available to help you pay for your education after you finish high school. This includes grants and scholarships, federal work-study programs, and student loans. If you’re trying to determine if a financial aid offer will cover enough of your education costs to make college affordable, the CFPB’s financial aid offer search tool can help.

Grants and scholarships

Grants and scholarships give you money to study and you don’t have to pay it back. So they should be your first choice to pay for your education. The simplest way to apply for a grant is to complete a form called the Free Application for Federal Student Aid (FAFSA ® ). To find other grant and scholarship opportunities, you can also explore these other sources:

The financial aid office of a college or vocational school.

Your high school counselor or a TRIO counselor .

  • The US Department of Labor’s free scholarship search tool .
  • Federal agencies.
  • Your state educational agencies .
  • Searches on the internet and in your library.
  • Foundations, religious or community organizations, local businesses or civic groups.
  • Organizations related to your field of interest, such as professional associations.
  • Organizations and groups dedicated to the preservation of ethnic and cultural heritage.
  • Your employer or the employer of your family members.

Federal Work-Study Jobs

Federal work-study jobs are another way to help pay for college. This type of employment is a needs-based subsidy that requires you to work part-time while you are in school. In order to access the work-study program, you must complete the FASFA ® form and meet the need-based criteria. You will only be paid for the hours you work. For more information, talk to your school’s financial aid office.

student loans

Student loans fall into two categories: federal loans and private loans.

Federal loans include:

Direct loans made directly by the US Department of Education.

PLUS Loans, which are federal loans that can be used by graduate or professional students and parents of dependent undergraduate students to help pay for college or vocational school.

There are two types of federal loans that are no longer available, but people may still be able to repay:

Federal Family Education Loans (FFELs), which are loans made by private lenders but backed by the federal government.

Federal Perkins Loans, which are low-interest federal student loans for undergraduate and graduate students with exceptional financial need.

Private loans , sometimes called “alternative loans,” are offered by private lenders, such as banks and credit unions. They are not backed by the federal government and do not include the benefits and protections offered by federal student loans. These loans may also require a cosigner (an endorsement from someone else who will also be responsible for repaying the loan) and a credit check (a review of your credit history).

By Master James

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