Student Loans

Estimates suggest college graduates earn $1.5 million more in their lifetime than high school graduates do. College graduates experience lower rates of unemployment. However, going to college is an expensive endeavor. Not many families can save enough money to pay for a college education. Adding more children to the equation only bolsters parent’s financial woes. The limited number of grants and scholarships are a great way to pay for college. The most obvious and available source of money for college are student loans.

There are loan options available for students seeking financial assistance in two categories: federal and private student loans. Federal loans are the largest and most sought after source of funds available for education loans. Private loans help supply supplementary funds once a student has reached the limit of their federal loan eligibility.

Federal loans should be your first option. These loans offer better terms, because the government guarantees them while offering low interest rates. To qualify for most federal loans, the applicant must file an Application for Federal Student Aid (FAFSA). In all cases, filing with the FAFSA is necessary to be eligible for any kind of federal financial aid. These loans are available to most students and the majority of students are eligible to qualify regardless of their credit history or credit score. Federal loans also offer a grace period after graduation before payments are due. Federal loans are available through private financial institutions.

Federal student loans include:

• Perkins loans
• Stafford loans
• Parent PLUS loans
• Graduate PLUS loans

The other options available to students are private student loans. After the grants, scholarships, and federal loans are exhausted, private loans are an effective alternative to meeting tuition expenses. Private lenders make these loans so your rate will depend on your credit history and credit score. You can apply for private loans at your school or at private lending institutions.

Private student loans include:

• Tuition Answer Loan
• Career Training Loan
• Community College Loan
• Signature Student Loan
• Continuing Education Loan