What Are Your Options?
In today’s world and economy it is very difficult to fathom how one might be expected to pay for there higher educational costs as well as to continue to live. Thinking about it might just hurt a brain cell or two. However, it really does not need to be that difficult. There are so many options for college student loans; all you really need to do is find out what those options are. I am hopping I can help you out with that part.
There are federal college student loans, state college student loans and alternative or private college student loans. Besides the options of a loan, you can also seek information on Grants (usually free money) and scholarships (also free money). In many cases, there are also work-study programs for certain fields you can apply for. So, as you can see the options are out there you just need to find out which option best suites your financial needs.
It is always encouraged to first apply for a Federal college student loan or financial aid program. You can do this by applying online to the free FAFSA application. It is very simply for you to find them at http://www.fafsa.ed.gov/. Once you have gotten your SAR report back, it will give you an outline of what loans and financial aid assistance is available for you. You need only sign the promissory note and it will be a done deal.
Unfortunately in much too many cases, once federal financial aid has been supplied you may still find that you need more funding to complete your education. This is were an alternative or private college student loan would come in. You ask were can you obtain a private college student loan? Many banks and financial institutions are happy and willing to help with a private student loan. However, there are two small drawbacks when you compare a private college student loan to a federal college student loan, the interest rate and a credit check.
When you receive a federal college student loan, the interest rate is fixed at a certain percentage and is a very good percentage, such as 6%. Each federal type of college student loan will have the same rate. Such at the Stafford college student loan. It is fixed at 6%. When you are applying for a private college student loan you will pay a considerably hirer interest rate. One could pay as high as 12 or 13 percent for an interest rate on a private college student loan. This is also were the credit check comes in. This is actually a personal loan from the bank or financial institution and it will not be backed (guaranteed) by the federal government. This is why a credit check will always be necessary.
Being a new college student one may not have much of a credit history if any at all. At this point a co-signer would be necessary. Depending on the co-signers credit background is what would determine your interest rate.
So, as you can see there are options. Once you have chosen a college or university you want to attend, go speak to the financial aid counselors. This is what they have been trained to do. Let them do there job and you do the best you can in college.
