What Varieties of Options are Out There in Student Loans?
The costs of education today are ten times what they were less than 40 years ago. But those differences become even more stark when considering undergraduate versus graduate programs. Fortunately, there are resources available to both types of student to help them pay for college.
Undergraduates typically rely on a complex mix of scholarships, grants and loans. Those loans are sometimes taken out by undergraduates alone, others by their parents alone, sometimes a mixture of the two as when the parent becomes a co-borrower or co-signer.
Stafford loans are very popular and there are two types. The unsubsidized loan is a bit more expensive because you are responsible for accrued interest from the very beginning of the loan. Though they cost more, these types of Stafford loans are easier to qualify for. A subsidized loan in which the government makes your interest payments until 6 months after you finish college are of course less expensive because you save on all that interest. However, these loans have stricter requirements, offered only to low-income families.
Here are some websites you can visit to see what you might qualify for: http://www.salliemae.com/get_student_loan/find_student_loan/undergrad_student_loan/federal_student_loans/stafford_loans/ and http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp
Graduate students have to work a bit harder for financial aid. Graduate school is more expensive and less scholarship opportunities are available. Typically a graduate student has to work as a research assistant or other employment related to their major to pay their tuition.
In recent times the PLUS loan program has been extended to graduate students. In the past this program was restricted to parents of undergraduate students. Now it has been expanded to include graduate students and rather than making the loan to parents the money is loaned directly to the student.
PLUS loans have several advantages.
Graduate students have one advantage that many people do not have. Most of them have not yet had the opportunity to get into a lot of debt and have credit problems. Since PLUS loan approval is based on your credit scores many graduate students are able to qualify.
Undergraduates typically rely on a complex mix of scholarships, grants and loans. Those loans are sometimes taken out by undergraduates alone, others by their parents alone, sometimes a mixture of the two as when the parent becomes a co-borrower or co-signer.
Stafford loans are very popular and there are two types. The unsubsidized loan is a bit more expensive because you are responsible for accrued interest from the very beginning of the loan. Though they cost more, these types of Stafford loans are easier to qualify for. A subsidized loan in which the government makes your interest payments until 6 months after you finish college are of course less expensive because you save on all that interest. However, these loans have stricter requirements, offered only to low-income families.
Here are some websites you can visit to see what you might qualify for: http://www.salliemae.com/get_student_loan/find_student_loan/undergrad_student_loan/federal_student_loans/stafford_loans/ and http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp
Graduate students have to work a bit harder for financial aid. Graduate school is more expensive and less scholarship opportunities are available. Typically a graduate student has to work as a research assistant or other employment related to their major to pay their tuition.
In recent times the PLUS loan program has been extended to graduate students. In the past this program was restricted to parents of undergraduate students. Now it has been expanded to include graduate students and rather than making the loan to parents the money is loaned directly to the student.
PLUS loans have several advantages.
Graduate students have one advantage that many people do not have. Most of them have not yet had the opportunity to get into a lot of debt and have credit problems. Since PLUS loan approval is based on your credit scores many graduate students are able to qualify.
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Before considering consolidation as a way to get your debt paid off, research the debt consolidation loan consequences. It isn't always a good idea to consolidate your debt. Find out why on the Inside Debt Consolidation website at http://www.insidedebtconsolidation.com
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