Hi, I am Tim. I am here to talk to you, a little bit about applying for Pell grants and Stafford loans. When you go to college, there are multiple ways to finance college, multiple ways to pay for college. Pell grants and Stafford loans are two very common ways to finance some of your education. Pell grants are a form of grant generally to parents, but maybe to some of the students that go to.
Pell grants are given more on need basis and they really do help you, get through college. They are deferred payments until you are done and when they say grant, you think free money, but they are really not free money, but they are deferred source of payment, meaning you don't have to pay until you get out a school and Stafford loans are very similar to that. Stafford loans are guaranteed student loan with a small amount of interest, generally discounted interest maybe in today's world being 2008, they are in the five percent range, five and a half percent range.
You apply for them at your local institution, through your college. You can get paper work through the college admission's office or financial aid office actually of your school. Most high schools have financial aid forms, you can get for Pell grant applications and Stafford loans applications.
Stafford loans are administrated by your local bank generally or regional bank, community bank and you can again pick up applications at the bank, high school of guidance office or your college financial aid office. They are generally paid back over ten or 15 years, once you get out a college, six months after you get out of college, you start making payment, if you get into trouble, you will loose your job or you don't get a job within six months. They are deferments that you can take along and away with the people that service those loans. Again that's a little bit about a Pell grants and Stafford loans. Thank you.
Transcription by:
Scribe4you Transcription Services