Because loans are often a large part of anyone's aid package and financial plan for meeting their university bill and other educational costs, it is important for students (and parents) to understand the timing and actions associated with the posting of loans to the bill.
A loan is a debt provided by an entity (organization or individual) to another entity at an interest rate, and evidenced by a promissory note which specifies, among other things, the principal amount of money borrowed, the interest rate the lender is charging, and date of repayment.
The Unsubsidized Direct Loan is also available to some independent students or dependent students whose parents do not qualify for the Federal Direct Parent PLUS Loan.
The interest on a subsidized loan is partially paid for by the government, while the interest on an unsubsidized loan is paid entirely by the borrower.
A loan entails the reallocation of the subject asset(s) for a period of time, between the lender and the borrower.
In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time.