Paying for College with Student Loans

No one can argue against the benefits of a post secondary education in today’s competitive world. Many jobs require a college or university degree, and it is difficult find a premium company willing to even interview applicants who do not have some kind of post-secondary qualification. But the best of intentions will not lead to a place at college or university unless one’s financial situation will allow it. The unfortunate fact is that many students who would like to continue their formal education after high school simply cannot afford it.

Not many students are fortunate enough to have funds ready and available as they graduate from high school. Some have worked at part-time jobs, and they have been able to put aside some money for their future education. Others rely on their parents to bridge the gap. Many parents have saved funds through an approved savings plan, and when such a plan matures at high school graduation, the extra funds can allow students to proceed with confidence to their next level of learning. Without this financial backing, however, college and university candidates have no choice but to apply for a loan. For many, this means an expensive bank loan, but those who have truly done their homework know that a government student loan is the best answer.

Government student loans for post-secondary education have several advantages over a regular bank loan. The Federal Stafford loan, for example, is particularly attractive to young students who are struggling with tight budgets in that it offers low interest rates. For students who have not yet been able to establish a solid credit rating, this can be an invaluable benefit. Interesting also is the fact that the Stafford loan can be granted with no invasive credit check, and, not only that, but there is no requirement to repay the loan until after college graduation.

Not all students feel that they are in a position to arrange the necessary financing of their post-secondary education. Many feel that their parents should still be involved, and in some ways this can be advantageous. The Federal Plus loan for students is designed specially for this family situation. This plan allows parents to borrow money at low interest rates to finance the college or university education of their children. Credit checks and collateral are usually required, but parents can normally secure a larger loan because of their established credit rating. This can make a significant difference to students who inevitably need extra funds for the purchase of text books, materials, and other course requirements.

Student loans are more than just a convenience to college and university candidates. They are a significant contribution to the success of post-secondary education in that they allow students to concentrate on their advanced studies without having to bear the burden of a part-time job. Too many students have been forced to neglect academic work because they have had no choice but to work in order to finance their education. This is no longer necessary. Federal student loans are available, and students should be encouraged to take advantage of them.

Categories Debt & Credit

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