Can some explain how student loans work?

Can some clarify how student loans work?

The question

I’m recently suspended from financial aid at my school fafsa approved it but, my school denied it because my completion rate is below 67 % i have a 4.0 GPA but i still didnt meet the school stanard and this is their policy and everyone at the school is going through the whole thing and i did the whole appeal process in Fall 2011 and the deal was i did not get any IP’s which means incompetes or a W which means i cant withdraw from a class or get C. Well i got 3 IP’s and i still have a 3.0. I already reisgetered for Spring 2012 and I’m taking one class my mom said look into taking out of student loan and see how i do this semester with just this one class. The school is open Monday but closed until January 1st 2012 and that is when my payment is due. How does the whole student loan work and is it to late to take one out ? Please no rude answer

Best answers:

Federal student loans are considered financial aid. You are not eligible for them either. Even if you were you must be enrolled in at least 6 hours to take them out. You would need to look into private student loans. These come through private banks or credit unions (such as Chase, citibank,et). These are not excellent loans to take out and you should avoid them if at all possible. Private loans do require a co-signer with brilliant credit

The deal is that you can’t run or hide from YOUR FAILURES, so it doesn’t matter if you were going to receive an F in a class or close to Withdraw (or got an IP/Incomplete) from it – it still counts the same, you got zero credit either way.
Financial Aid only pays for students that satisfactorily complete/pass ALL their classes.

As a result you are no longer eligible for financial aid – grants OR loans.

The supplies for keeping your financial aid are:
- keep a GPA of at least 2.0 -AND- pass ALL your classes.

http://www.fafsa.ed.gov/

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MP3 www.4shared.com Guests: Alan Collinge Student Loan Scam: During the first hour, Ian Punnett welcomed the founder of StudentLoanJustice.org, Alan Collinge, who discussed how federal student loans have become predatory, turning a generation into debtor slaves. “It’s a socially horrible epidemic,” he declared, noting that America’s total student loan debt now surpasses the nation’s credit card debt. He clarified that student loans are above all pernicious because they contain no consumer safeguards such as bankruptcy protection, statute of limitations, or the ability to re-finance the debt in an open market. As a result of these factors, Collinge said, when a loan is defaulted, it can double or even triple due to penalties and fees. In looking at the source of the problem, Collinge pointed to student loan advocates and the Department of Education as the key entities that “failed to play their part” in overseeing lending practices. According to him, the DOE has been using a faulty metric to determine the default rate on student loans, thus misleading Congress into increasing the allowable limits on colleges for lending. Additionally, Collinge said, the DOE really makes “about 22% versus what they pay out” for defaulted student loans. In order to fix the student loan epidemic, Collinge endorsed restoring bankruptcy protections for these loans. Should that happen, he said, “a multitude of problems” will resolve themselves, including an “nearly overnight” drop in …