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the scale of desirability for financial aid, loans are in last
place following grants, scholarships, and work/study programs,
since money from loans has to be paid back. There are many loan
programs with varying rates of interest and pay-back plans,
but aside from a limited number of exceptions, the money is
not "free." However, we have included area since it may be necessary
for some students to make up a. portion of their financial aid
package with one or more loans after the free money avenues
have been exhausted. In this chapter we briefly describe some
of the more well-known programs and a few lesser- known innovative
ones.
An important note: Students cannot
borrow more than the cost of education at their school, minus
any other financial aid being received. Also, if the student
fails to repay back the loan, he/she runs the risk of going
into default, in which case the entire amount may be demanded,
and the student's future credit rating may be seriously affected.
TIP:Check out The
Student Loan Marketing Association web site.
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