Student loans are a valuable tool in financing a college education, especially for those students whose savings, grants, and scholarship offers still fall short of that which is needed to pay for school.
Most college students borrow money in some form or another, or take out student loans from a number of sources.
Unlike free types of financial aid like grants or scholarships, student loans have to be repaid at some point after graduation. Not only does the total amount borrowed need to be repaid, but it also must be repaid with interest. Most college graduates spend ten years or more returned their student loans.
College Student Loans:
College is certainly one of the most expensive investments a young student will ever make in their lifetime.
According to a recent National Post-secondary Student Aid Study (NPSAS), more than half of all four-year undergraduate students take out student loans to help them pay for college.
There are both federal student loans and private student loans available for prospective students, each of which can help to finance a post-secondary education.
Student loans are not exclusive to undergraduates - both graduate students and parents have student loan options that require even more financial leverage than undergraduate students.
Recent News about Financial Aid and Scholarships:
Federal student loans are the largest and most popular source of college student loans. Private financial institutions such as Sallie Mae can provide federal student loans, along with other government institutions like Stafford and Perkins
Federal student loans often have more favorable terms than private loans, with lower interest rates and less borrowing restrictions. Accordingly, it is a good idea for students to get all the federal loans possible before looking into private loans.
Private student loans can be an important supplement to federal loan programs. Students can often get private loans from their particular college or university, or from private financial institutions. Depending on each lender, the terms of private student loans can vary considerably based on credit history and the borrowing amount.