Becoming unemployed may be the best turning point of your life. Can’t find another job? Go back to school. Unemployment compensation is typically still payable if you’re an active student. Additionally, student loans help with living expenses while you are in school, and do not have to be repaid until school is completed. Online education allows you to earn a degree without having to relocate or spend money on gas getting to a physical campus.
The federal government’s Stafford loan program is a service provided through commercial lending institutions such as Great Plains Lending. Many online colleges and universities accept Stafford loans and grants. The lenders that give out these loans can help students develop a budget for expenses and determine the amount of funding needed for each term.
Some Stafford loans are subsidized and others are not. The government offers the loan on the basis of need. The subsidized loan is payable six months after you leave school. With this type of loan, the government pays the interest on the loan for the six month period. The commercial loan company provides the money to the student. The government determines eligibility for subsidized loans based on the adult student’s income or the parents’ income for dependent students.
The unsubsidized Stafford loan holds the student accountable for all accumulated interest. The interest rate is often lower than the rate for traditional loans, and students can defer payments until after they leave school.
Rules for subsidized and unsubsidized Stafford loans change. Be sure to check with a financial institution to get accurate information about specific rules and benefits. During times of recession or economic instability, some may qualify for needs-based benefits who were previously denied loans by lenders.
Improve your future by getting an online degree in a field where jobs are plentiful.