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What You Need to Know About Student Loans

University education is very costly and every year, that cost is increasing even more rapidly than inflation. In school year 2013-2014, the College Board posted that the cost of undergraduate tuition and fees at private institutions was pegged at $30,094. Public colleges and universities charged state residents roughly $8,893 while out-of-state students had to pay an average of $22,203.
If tuition and fees are not costing enough pretty pennies, then living expenses and miscellaneous spending on books, supplies, and other school requirements will. Keep in mind that the aforementioned costs are averages of what all educational institutions in the country are charging for university education.
To finance university education, parents or students themselves would probably have to pay an arm and a leg. Thankfully, there are student loans that can supplement, if not fully finance, your hard-earned cash to successfully graduate from university.
Finding the right student loan that offers the most affordable payment scheme and financial support will have to be at the top of your priorities. Here at Assisting America, we would like to help you in that search. So we have gathered for you information on some things that you need to know about student loans.

Government Funding vs. Private Funding

Student loans can come from either the government or from private institutions. The U.S. Department of Education offers U.S. citizens help in managing student loans that will be funded by students’ respective federal governments. Government funding can either be subsidized or unsubsidized.
Meanwhile, private institutions, such as banks, offer additional support should government loans not suffice to fully finance university education. Normally, private funding has much higher interest rates than government funding. The interest rate for private loans are dependent on an applicant’s creditworthiness.

Subsidized Government Funding

If an applicant proves that he or she cannot in any way finance his or her college education, the federal government will offer a subsidized student loan. While the student still needs to pay the loan granted, the government will pay the interest of the loan while the student is in school up to six months after his or her graduation.

Unsubsidized Government Funding

On the other hand, undergraduate and graduate students can borrow money from the government. The amount that a student can borrow through the government funding is determined by the school and by the limits imposed on these loans by the Department of Education. A quick look at Federal Student Aid will give an idea on the eligible maximum loan amount per year and the current interest rates (a student’s credit history does not affect the interest rates).
The student who receives unsubsidized federal student loan has an option to pay the loan and the interest while he or she is in school or the total amount of loan and the interests can be paid using a repayment scheme after graduation.


Students who need to apply for student loans through government funding to finance their university education will have to accomplish a form called Free Application for Federal Student Aid or FAFSA. Once accomplished and processed, award certificates will be sent to the student from universities where he or she intends to study. Each university, in turn, will also use the information from the FAFSA to determine a student’s eligibility to apply for its scholarships, grants, and loans.

What if I can’t repay?

If you are applying for a student loan, you have to keep in mind that a loan is borrowed money with accompanying interest. So, it needs to be repaid. You can have the loan services customize a repayment plan based on your case. Although there is a chance for the federal student loan to be forgiven, certain merits have to be gained first. Private loans meanwhile may not offer such.

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Phone: 888-891-5889
Fax: 888-794-7475
Email: info@AssistingAmerica.org

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AssistingAmerica.org (AA) is a private organization and is not a government entity. AA is a Document Preparation, Submission and Tracking Service. AA will not pay your student loans for you or on your behalf. We offer our service only for the Preparation, Submission & Tracking of Federal Student Loan Consolidation Documents. Document Preparation Services are not available for residents of the following states, IL, CT, GA, KS, NY, WI, WA. *Results May Vary and are Solely Based on The Federal Consolidation Program You Choose. Not available in all States.