Loans vs. Grants vs. Scholarships A loan, in its easiest definition is cash that is lent by a party and it is likely to be paid back with interest.
Colleges, banks and also the national government have actually the option to loan cash to pupils at their discernment and terms. Therefore when you could possibly go to college, it comes down with an expense, after which some.
The absolute most common variety of loan is the Federal Perkins Loan, that is lent by the college, in your child’s name and with a maximum amount of $5,500 each year of undergraduate research.