Consolidating to direct loans
Credit reports are summations of every credit encounter a person has logged during his or her lifetime – with greater numbers of successful interactions leading to positive credit scores.
The problem for most college students is not a history of bad credit, but rather a credit history that simply does not include enough entries.
To utilize the funds, students were required to enter into borrowing agreements with private lenders, who administered each student’s guaranteed Stafford Loan.
Involving private lenders in the process created a perception of patronage between banks and government, so efforts have long been underway to sever the entities’ student loan relationships.
FAFSA formulas distill family data to forecast where each student stands in terms of meeting education expenses.
The popular Stafford Loan program, a long-time federal financial aid stalwart, has recently been changed to accommodate modern students.
Historically, campus financial aid offices worked to provide college financial aid packages that included guaranteed Stafford Loan awards.
Formal financial aid offers include Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG), TEACH Grants, Military Service Grants Federal Direct Student Loans and any other forms of institution-specific assistance that are available at your school.
An important distinction exists between federally issued student loans : Some are subsidized, while others are not.
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Grants and scholarships provide assistance that is not repaid.