Continuing College Education Through Loan: Which Loan Is Better?

Entering into university or college and obtaining a bachelor's degree is undeniably expensive

. For all the students who enroll in elementary, about 80 percent enrolls in high school. However, after they graduated in high school, just few or about 10 percent of those students continue their education in college. What makes it sadder is that with this small numbers of students who are very lucky to have continued their education, there are also a lot of them who are probably quitting in the middle of their college education because of some financial problems such as the school tuition and miscellaneous fees.

It is alarming that the figure of students who badly needs financial assistance in order to continue their college education is increasing at a higher rate as the time passes by. It should mean that the number of students who can successfully graduate in college decreases. It could also signify that many students will have to graduate from college with several debts that could grow with interest through time until it will become a major financial problem in the future. Thus, financial assistance is needed. They may be in the form of scholarships, grants or loans for students or for parents. Now, if one is not lucky enough to qualify for the scholarships and grants they have applied then the next option available for them is to acquire a loan. There are loans for students as well as for parents. Now, let's consider which loan is better.

Financial lending services offers low interest rates for student loans since students are not that capable of earning higher money. Also, these loans are limited and not so big. In US, the one that provides student loan with the lowest interest rates is Federal student loan. They are also known in providing their costumers the best repayment options. So if you decide to acquire a loan, consider first the federal loan and make it your top choice. Look for the information directly from the government websites in the internet and evaluate if you are qualified to apply for the said grants.

To prevent the unexpected higher amount to be paid in the future, it is important to limit your loan responsibilities. You must get fund that is exactly needed for your school expenses and not for your own luxury. Eventually, parents can decide on extending the financial assistance to their children in paying off the loans when it comes the time to pay back the loan they have acquired and if their children can't pay for it.

Another option for acquiring a loan to assist the financial expenses of the student in college is the Federal parent loans or Parent Loan for Undergraduate Students (PLUS). Also, PLUS are offered by the government for lower interest rates. Conditions for applying PLUS loan is that the parents should have a one or two dependent child who is going to enroll in a university or in a college. Also the parents should have no bad records in terms of its financial status to other companies and have a good credit history. One characteristic of a PLUS loan that make it not preferable compare to the student loan is that the you have your first payment for the loan will start about sixty days after the loan is approved. This is totally different from the federal student loan mentioned above wherein the first payment for the loan is delayed until after the graduation of the student who applied for it.

Last option of finding for extra money to support College education, other than grants and scholarships, is acquiring private loans from private lending services which can be taken by both students. First payment is usually scheduled based on what kind of loan you choose. You can have it daily, weekly, or monthly. However, students can negotiate the company for the repayment to commence after the college graduation. Taking out small amount on private loans is also an advantage when you apply for federal grants and loans. You could get a good credit history when you pay well.

Now, it is up to you on how you balance the pros and cons of the different kinds of loans available for you. When deciding on which loan you should acquired, you should first determine the approximate amount of debt that your child will need in order to graduate and have a college degree. Also, you must consider the character of your children if they are responsible enough to help you pay for the loan. Lastly, you should have a serious talk with your child and discuss on what repayment plan fits for both of you.

by: Ian Watson

POST COMMENT

How to Find the Right Real Estate School Online Teaching jobs: shaping future and building nation Educational and excursion tours and their importance Getting Acquainted With The Advantage Of Independent Schools Teaching English in Korea - What is a Hagwon? School Fundraisers – Made Simple Educational Services For Children With Asperger's Syndrome Online Home Schools: - Most Popular Destination where your Dream will be True Private schools in India raising the level of education School Uniform Shops to Cater To All Your Back To School Needs School Becomes Drug Treatment Center Information For Food Service For Schools Tax deduction Work-Related Education Expenses