Student Loans Have Many Options and Benefits
The types of student loans that are out in the world today are various and aren't only offered by the government. Parents and college pupils have various options available to them. They don't need to feel boxed in by narrow ideas on what is or isn't available as a viable answer to the problem. A trip to the financial aid office of the intended college or university of attendance will do alot to quell fears. Completing the FAFSA way in advance will ensure money the pupil is entitled to will be received. Also, working on financing options months and even up to one year ahead of the game may broaden what is available. Applying for scholarships and free federal aid will help to eliminate the need to borrow as much money. College pupils should only borrow what they absolutely need for tuition, books, and housing. Otherwise the amount they will pay back in the future will be outrageous.
Federal Stafford student loans offer college people certain limits that are subsidized and unsubsidized. The government underwrites the cost of interest on subsidized money while kids are attending college. Unsubsidized means the college person will have to pay back the interest. There are several choices for how to go about paying back accrued interest. College people can pay the interest back while in school to save paying it on the back end things. If this isn't a choice up for negotiation then the interest can accrue and be paid back after graduation. The interest rates for federal money is some of the lowest around for a financing option. Credit cards are extremely high and their interest rates are often in the double digits. College people should gain a healthy respect for the damage credit cards can wreak on their financial future.
Parents can borrow money for their child's education as well. ParentPlus is a program that allows parents to finance a child's education through the government. The interest rates beat most other kinds of financing parents can dream up as an alternative. It really helps if parents have been too busy socking money into their retirement accounts or paying bills to save for college expenses. These type of student loans give the parents a certain amount of time to pay back the money. The terms are not too far off from that of the government financing for college undergrads. Both parents and college undergrads have a hand extended from the government when requiring a solution for college money.
Written by Adam Hefner
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