| There is no way you can compare the value of | | | | family income, can take a Stafford student loan. The |
| college scholarships against student loans. Who | | | | beauty of this loan is that the U.S. Department of |
| wouldn't want a college scholarship that would provide | | | | Education pays the interest that accrues while the |
| grant money that did not have to be repaid versus | | | | student is in college and for six months after |
| paying back money borrowed plus interest. Simply put, | | | | graduation. |
| a scholarship is your money to spend on college. A | | | | Other loans are called "non-subsidized" student loans. |
| student loan is just that: Borrowed money that must | | | | These loans are not given based on need, and any |
| be repaid. | | | | student can request an unsubsidized student loan. With |
| A college scholarship is real money that a student is | | | | a non-subsidized loan students are charged interest |
| granted to use for such things as college tuition, room | | | | from the day the check is delivered. For both loans the |
| and board and other expenses as allowed by the | | | | principal payments will begin 6 months after graduation, |
| stipulations of the college scholarship. A student loan is | | | | but as mentioned, the non-subsidized student loan |
| money loaned to students for college tuition and other | | | | would have interest payments due from day one of |
| expenses, but students pay interest immediately as | | | | the loan. |
| soon as the check is used | | | | Therefore, it is always in a student's best interest to |
| The best type of college scholarship is one that is | | | | take the time to search for college scholarships. This |
| granted for all four years of college. These | | | | means searching for awards even after they are |
| scholarships are called "renewable." On the other hand, | | | | accepted to a school, and searching for scholarships |
| a student loan is typically taken out each year from a | | | | during college. The goal is to have a student graduate |
| loan granting institution or sometimes from the college | | | | with the smallest amount of debt in student loans as |
| itself. The interest rate on the loan will vary. | | | | possible. This means taking advantage of college |
| Some loans are called "subsidized" loans. Students | | | | scholarships as much as possible, and covering extra |
| who are eligible for subsidized student loans, based on | | | | expenses with loans or job income. |