Paying for College: Student Loans

Paying for College: A Guide for UNCG Students
and Families This video is about student loans. You will
learn: How loans differ from scholarships and grants
The difference between federal and alternative loans
And questions to consider before borrowing money Chances are you will qualify for some sort
of educational loan. Borrowing money is an important decision and one you will want to
weigh very carefully. Before a final decision, it’s extremely important to understand that,
unlike scholarships and grants, loans must be repaid. There are two basic types of educational loans
– federal and alternative. The federal government offers several loan options for students and
families. For federal loan consideration, students must submit the Free Application
for Federal Student Aid, also known as the FAFSA. Alternative loans are offered through private
lenders. As a rule, these loans have higher interest and less advantageous terms compared
with their federal counterparts. The UNCG financial aid officers counsel students
to consider federal loans as a first option over alternative loans and to treat these
private loans as a last resort. If a private lender is your only option, carefully evaluate
the terms of the loan to understand if it meets your needs. Before signing off on any loans, students
and families will benefit from open conversations about: Whether the family has considered all available
resources other than loans. What expenses specifically the loans are meant
to cover. If the money is intended for expenses not directly related to education, are there
other ways to cover those costs? How long it will take to repay loans on a
salary the student can expect to earn on graduation. Is everyone comfortable with the amount of
money and repayment duration the student is committing to? Remember: Borrowing money requires careful
and thoughtful consideration. Loans are a serious financial commitment and must be repaid. Let’s review what you’ve learned:
Loans are borrowed money and must be paid back.
Explore federal loans before alternative loans. Students and families should think carefully
before borrowing money. UNCG wants you to succeed in your goal of
earning a college degree. The UNCG Financial Aid Office website is a great resource, and
our financial aid officers invite students and families at any stage of the college application
and financial aid process to call or visit to learn more.

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