<p>what do you guys think of them?? and how does it work actually??</p>
<p>do they just hand over the money??</p>
<p>or do they ask for test score, etc.</p>
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what do you guys think of them?? and how does it work actually??
[/quote]
To broad and too vague a question really. Depends on the loans. Some are offered by the school based on need. Some are government with low interest and the interest is paid by the govt till graduation. Some are govt but you are responsible for the interest. Some you can defer payments. Some are private loans. Some are in parent names. Some are in student names. Some are in student names but require a cosigner (usually a parent). </p>
<p>Finaid.org has some good information here
FinAid</a> | Student Loans</p>
<p>
[quote]
do they just hand over the money??
[/quote]
Federal loans are usually paid direct to the school. Any money left after all charges are paid is refunded to the student. Private loans may be paid to you.</p>
<p>
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or do they ask for test score, etc.
[/quote]
</p>
<p>No - not any loans I have heard of anyway. Subsidized govt student loans are need based not merit based. They are usually awarded as part of a financial aid package by your school. Other loans probably require you to apply for the loan and will require credit checks for both the student and also the parent where a cosigner is required.</p>
<p>One thing is the same for all of them. Eventually they have to be paid back.</p>
<p>Most of the colleges put a financial package together that includes a list of lenders that work closely with the college. I believe freshman can borrow about $3500 1styr. Parent Stafford loans plus private loans make up the difference. Student loans increase 2nd yr.</p>