what does "liquidate loans" mean? Does it include "selling loans" a bank has?

Laylas Mom Asked: what does "liquidate loans" mean? Does it include "selling loans" a bank has?

Student loans are done on a yearly basis.They are not going to give you 4 years of education costs up front.If you filled out a FAFSA the government will tell you what your expected family contribution is and then give you an estimated amount of federal aid.Then your schools gives you a financial aid package based on those FAFSA results.If the government aid is not enough to cover your expenses then you may need to take out private credit based loans to pay the rest.If your credit score is below a 650 then you may very well need a co-signer.Still a private loan company will only give you 1 academic year's worth of aid and the maximum amount they give is determined by the cost of attendance determined by your school.