{"id":731,"date":"2017-03-13T19:45:33","date_gmt":"2017-03-13T19:45:33","guid":{"rendered":"http:\/\/blog.spcollege.edu\/college101\/?p=731"},"modified":"2024-01-30T15:27:53","modified_gmt":"2024-01-30T20:27:53","slug":"college-loans-made-easy","status":"publish","type":"post","link":"https:\/\/blog.spcollege.edu\/college101\/college-loans-made-easy\/","title":{"rendered":"Understand what you&#8217;re borrowing: college loans explained"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-801\" src=\"http:\/\/blog.spcollege.edu\/college101\/wp-content\/uploads\/sites\/26\/2017\/02\/smart-loan-choices-1.jpg\" alt=\"Smart college loans choices today equals financial freedom tomorrow\" width=\"533\" height=\"100\" srcset=\"https:\/\/blog.spcollege.edu\/college101\/wp-content\/uploads\/sites\/26\/2017\/02\/smart-loan-choices-1.jpg 800w, https:\/\/blog.spcollege.edu\/college101\/wp-content\/uploads\/sites\/26\/2017\/02\/smart-loan-choices-1-300x56.jpg 300w, https:\/\/blog.spcollege.edu\/college101\/wp-content\/uploads\/sites\/26\/2017\/02\/smart-loan-choices-1-768x144.jpg 768w\" sizes=\"auto, (max-width: 533px) 100vw, 533px\" \/>College loans are one option for\u00a0financial aid, and if used properly, they can be a practical alternative for students\u00a0whose scholarships, grants or savings do not cover their\u00a0full tuition costs. In fact, two-thirds of students currently have student loans, and the average yearly student loan debt is $7841. So it is important to understand which kinds of loans you are taking and how much you are borrowing.<\/p>\n<h2>Two types of college loans<\/h2>\n<h4>Private<\/h4>\n<p>Private loans are funded by banks or other lenders, who have the freedom of setting the interest rates, loan limits, terms and conditions. Private loans also have less flexible repayment options compared to\u00a0federal loans. Most colleges\u00a0accept private college loans. For more information on private loans, please seek advising from a\u00a0financial aid advisor.<\/p>\n<h4>Federal<\/h4>\n<p>Federal loans are offered to eligible students who\u00a0submitted a Free Application For Student Aid (FAFSA). Make filling out your FAFSA application easy by <a href=\"http:\/\/blog.spcollege.edu\/college101\/fafsa-the-details-financial-aid\/\">reading up on how to De-mystify your FAFSA.<\/a>\u00a0Federal loans have some good perks: Some federal loans will not accrue interest while a student is in school. There are flexible repayment options which are based on income, and there are some loan forgiveness programs for borrowers who make public service their career.<\/p>\n<h2>Subsidized vs. unsubsidized college loans<\/h2>\n<p>Federal loans are either subsidized or unsubsidized. It is important for you to know the difference before borrowing either.<\/p>\n<p><strong>Subsidized loans<\/strong>\u00a0are a type of college loan that you are 100 percent liable to pay back. However, the U.S. Department of Education will typically pay for all of your interest if you are enrolled at least half-time.<\/p>\n<p><strong>Unsubsidized loans<\/strong>\u00a0are a type of college loan that you are liable for, but the borrower is also\u00a0responsible for all accumulated interest while in school at\u00a0least half-time at an interest rate of 3.76% for undergraduate students.<\/p>\n<p>If you make smart loan choices today, you can have financial freedom tomorrow.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>College loans are one option for financial aid, and if used properly, they can be a practical alternative for students whose scholarships, grants or savings do not cover their full tuition costs. But it&#8217;s important to understand which kinds of loans you are taking and how much you are borrowing.<\/p>\n","protected":false},"author":1071,"featured_media":1130,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1,17,15],"tags":[],"coauthors":[52],"class_list":["post-731","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-college-101","category-financial-aid","category-money-for-college"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\r\n<title>Subsidized vs unsubsidized: college loans made easy<\/title>\r\n<meta name=\"description\" content=\"College loans are just another form of aid. The difference between scholarships, grants and loans is simple. The loans you have to pay back with interest.\" \/>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/blog.spcollege.edu\/college101\/college-loans-made-easy\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"Subsidized vs unsubsidized: college loans made easy\" \/>\r\n<meta property=\"og:description\" content=\"College loans are just another form of aid. The difference between scholarships, grants and loans is simple. The loans you have to pay back with interest.\" \/>\r\n<meta property=\"og:url\" content=\"https:\/\/blog.spcollege.edu\/college101\/college-loans-made-easy\/\" \/>\r\n<meta property=\"og:site_name\" content=\"College 101\" \/>\r\n<meta property=\"article:published_time\" content=\"2017-03-13T19:45:33+00:00\" \/>\r\n<meta property=\"article:modified_time\" content=\"2024-01-30T20:27:53+00:00\" \/>\r\n<meta property=\"og:image\" content=\"https:\/\/blog.spcollege.edu\/college101\/wp-content\/uploads\/sites\/26\/2017\/03\/collegeloans.jpg\" \/>\r\n\t<meta property=\"og:image:width\" content=\"715\" \/>\r\n\t<meta property=\"og:image:height\" content=\"261\" \/>\r\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\r\n<meta name=\"author\" content=\"Lindsey Velde\" \/>\r\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\r\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Lindsey Velde\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\r\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/blog.spcollege.edu\\\/college101\\\/college-loans-made-easy\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/blog.spcollege.edu\\\/college101\\\/college-loans-made-easy\\\/\"},\"author\":{\"name\":\"Lindsey Velde\",\"@id\":\"https:\\\/\\\/blog.spcollege.edu\\\/college101\\\/#\\\/schema\\\/person\\\/d9a7a573784a482b8dedab445382ec3f\"},\"headline\":\"Understand what you&#8217;re borrowing: college loans explained\",\"datePublished\":\"2017-03-13T19:45:33+00:00\",\"dateModified\":\"2024-01-30T20:27:53+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/blog.spcollege.edu\\\/college101\\\/college-loans-made-easy\\\/\"},\"wordCount\":325,\"image\":{\"@id\":\"https:\\\/\\\/blog.spcollege.edu\\\/college101\\\/college-loans-made-easy\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/blog.spcollege.edu\\\/college101\\\/wp-content\\\/uploads\\\/sites\\\/26\\\/2017\\\/03\\\/collegeloans.jpg\",\"articleSection\":[\"College 101\",\"Financial Aid\",\"Money For College\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/blog.spcollege.edu\\\/college101\\\/college-loans-made-easy\\\/\",\"url\":\"https:\\\/\\\/blog.spcollege.edu\\\/college101\\\/college-loans-made-easy\\\/\",\"name\":\"Subsidized vs unsubsidized: college loans made easy\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/blog.spcollege.edu\\\/college101\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/blog.spcollege.edu\\\/college101\\\/college-loans-made-easy\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/blog.spcollege.edu\\\/college101\\\/college-loans-made-easy\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/blog.spcollege.edu\\\/college101\\\/wp-content\\\/uploads\\\/sites\\\/26\\\/2017\\\/03\\\/collegeloans.jpg\",\"datePublished\":\"2017-03-13T19:45:33+00:00\",\"dateModified\":\"2024-01-30T20:27:53+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/blog.spcollege.edu\\\/college101\\\/#\\\/schema\\\/person\\\/d9a7a573784a482b8dedab445382ec3f\"},\"description\":\"College loans are just another form of aid. 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