FAQ About Student Loans

Frequently asked questions about student loans are answered here.

I'm paying for college myself. Can I get a student loan without help from my parents?

Absolutely. Most federal loans, like a Stafford loan, don't require a cosigner. And most student loans are given to people with limited credit history, so they are a great way for new borrowers to establish credit.

How long do I have to pay off my loans?

Generally, 10 years, but it varies. Most student loans enter the repayment process six months after you graduate. From then, it takes 10 years to completely repay the loan. If you choose to consolidate your loans, you may be able to extend the repayment period.

Do I really have to repay the loans?

Yes! When you agree to a loan, you agree to repay it. Forgetting to repay, or refusing to repay, could haunt you for decades. Students who don't repay their loans have horrible credit, which means they have difficulty buying a car, buying a home, or even renting a home. Pay off your debts and establish a good credit history.

What's the difference between unsubsidized and subsidized loans?

A subsidized loan is considered need-based. Chances are, you qualified for a subsidized loan because of information you filled out on your annual FAFSA form. The government pays the interest on a subsidized loan while you are in school. Unsubsidized loans aren't based on need and accrue interest from the moment you take them out.

Can I use my student loans for rent?

Yes, but be careful. It's easy to accumulate a mountain of debt in college, especially while loans are available. Remember that these are loans that you must repay. They aren't gifts. If a part-time job isn't available and you have no extra means of support, consider a student loan to pay for expenses. One of the most important things you have to remember is be a responsible borrower.