Grants and scholarships provide assistance that is not repaid.
Generally, grants help those with the highest levels of financial need, while scholarships cover college expenses for students who exhibit high standards in academics and athletics.
In 1998, the United States Congress changed the interest rate to the aforementioned fixed rate weighted mean, effective February 1, 1999.
Whenever possible, pay for college with financial aid that doesn’t get paid back; but when free-money gift aid doesn’t cover all your bills, turn to student loans to bridge your higher education affordability gap.
College-aged individuals are not exemplary credit risks.
Paying for college places extraordinary financial burdens on families; especially in light of continually rising higher education costs.
Unless your college fund is well-stocked, you’ll be scraping for student financial aid along with your school-mates.
The fixed interest rate is calculated as the weighted average of the interest rates of the loans being consolidated, assigning relative weights according to the amounts borrowed, rounded up to the nearest 0.125%, and capped at 8.25%.