Learn About Student Loan Options

Student LoansAttending a college or university to receive an education can be very expensive. In fact, tuition at the average four-year institution these days ranges anywhere from $30,000 to $100,000 or more, and that is just for somebody who graduates with a Bachelor’s degree! The cost of obtaining a Master’s or even a Doctorate degree can be even higher. Fortunately, if you are worried about paying for school, there are some great student loan options out there for you to explore.

Often times, the best way to go about borrowing money to pay for school is to take out government loans. These tend to have the most reasonable repayment terms and lowest interest rates. In some cases, such as in the instance of subsidized Stafford loans, you can even avoid accumulating any interest while you are in school. Instead, you can enjoy 0% interest while you are enrolled and will not need to begin repayments until several months after you have graduated or stopped attending school.

Of course, Stafford loans are not the only option when it comes to taking out government-funded student loans. For those who are looking to have a co-signer on their loans in order to enjoy a potentially lower interest rate, there is the option of taking out Perkins loans. These allow the borrower to take out more money by simply having a co-signer, such as a parent or relative, enter into the loan term with him or her.

In order to be eligible for government-funded student loans and other government financial aid, however, it is necessary for all students to fill out what is known as the Federal Application for Student Financial Aid. This is a brief form that asks for information regarding one’s income and family income, if applicable. This information is then processed by the government and used to determine how much a student may be eligible to borrow. The FAFSA form must be filled out once annually each year that the student is enrolled in school in order for him or her to be considered for aid.

Another benefit of filling out the FAFSA annually is that it also allows students to be considered for federal grants and scholarships, such as the Pell grant. This is money that does not need to be paid back, making it a great resource for those who are looking for help in paying for school.

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