2. Student loans

The Cost of College

The cost of college continues to rise. Fortunately, financial aid is available to both persons and their parents or guardians to pay for persons' higher educations.

Loans are offered by government, private, and college-sponsored programs. Different types of loans come with different terms in the interest of helping as many persons as possible who need the assistance.

Following is an excerpt from a hypothetical conversation between Neha Zambetti, a college person, her financial aid counselor, and Neha's parents, as they consider options for obtaining a loan to finance Neha's higher education.

Fill in the blanks to provide the correct information.

COUNSELOR: Neha, I understand that you need additional aid to pay for your higher education and that your parents are willing to help you. They can apply for a loan.

NEHA: I'm so relieved to hear that. I have a , but it just isn't enough.

COUNSELOR: Mr. and Mrs. Zambetti, let's review a couple of the loan's terms that are different from those of Neha's loan. First, you be subject to . And, the interest rate on your loan will be than Neha's.

MRS. ZAMBETTI: That's okay. We're willing to accept those terms, not only because we want our daughter to concentrate on her studies rather than get another job, but also because we like knowing that the borrowing limit is instead of .

COUNSELOR: Good. Then let's talk about paying back the loan. Are you aware of the general terms regarding interest and timing of repayment?

MR. ZAMBETTI: Yes. Interest will start to accrue . We'll most likely be expected to begin repaying the loan .

COUNSELOR: Very good. Let's start completing the application for a loan. And remember, the interest payments may be tax deductible depending on .

NEHA: Thank you for your help. I'm looking forward to starting the next phase of my education. And, thanks, Mom and Dad!

NEED CONCLUSION AT THE END OF ANS