Yes. You have to pay back grant. You can do that in 3 installments, the first one is $100, then the next one is $500. And the next one is $1,000 and so on and so forth. And the way that you do it is you write a check to these banks. The banks in the states where you work, the state of California, they have a system that collects that money. You send them the money, and they don’t have a problem making you repay it when it comes time to pay your grant. But the Federal Reserve, that bank that prints money, they keep all of this in reserve money. They loan to the Government, the money is sitting right in the Federal Reserve at interest. So if you are a student, you don’t have to repay it.
You don’t pay it back?
No, you make the deposit, and you pay it back when you graduate.
So what makes people pay back grants? Is there a fee or is it an interest based payment?
It’s a fee in effect. So there are fees to pay back the grant. So if the amount is not paid back in one year, they will give you something to pay it back with, so they will give you about 1.1% interest, about $1,000 a year until you pay the grant back. Then it would be $2,000. It could go up to $5,000.
Why does this affect students who have not yet graduated from college?
Because some schools that have very expensive programs, many of them don’t have to offer the scholarships. So then they may not give them to this students. So at any rate, many schools don’t give the scholarships unless the scholarship pay back is within 5% of the loan repayments after 10 years. So if it is a loan loan, maybe the loan isn’t being repaid in the way you would like to because you haven’t paid it back. So some students, people who are not in debt, may be forced to continue to work beyond their college plans that they had set. So I don’t know why somebody would want to do that.
So if it’s not your parent’s fault, maybe it’s someone who had gotten a scholarship and didn’t take it back.
Yeah, yeah, yeah.
Who has been paying back those loans?
There may have been a couple people that are now in government
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