Which College Loan is Right for You?
Written by: Jill Dow
Many young college students are under tremendous pressure trying to figure out how they are going to pay the high costs of college tuition. Often times, their parents are equally concerned about where the money will come from for their child's education expenses. If you're a worried student or have a college bound child and have exhausted the financial aid and scholarship avenues, your only solution is a college loan. There are several kinds of college loans available, but which college loan is right for you?
The first type of college loan is a federal student loan. This loan is either subsidized or unsubsidized. Subsidized college loans are when the government pays the interest of the loan for the student for the time they are in school, but the student must show a great financial need to get this type of loan. Unsubsidized federal loans are available to anyone. With an unsubsidized college loan, the student must pay the interest begining at the time the loan is issued. There is no deferment. Federal student loans are very easy to obtain and are the most commonly used.
The next type of college loan is a private student loan. A private student loan may be required to add funding when other types of financial aid are not enough to cover the student's costs. Private student loans are credit based. They are unsecured, which means they require no collateral, but they have very high interest rates. Private college loans can be used for anything, not just tuition costs.
Parent college loans are another type of college loan to consider. A parent college loan is a loan the parents can take for the full amount of the college tuition. This loan can span the tuition costs for all of the years the student will be attending college. This loan is convenient because it will be the only loan needed for the duration of your college years. The interest rates are much lower on parent student loans.
The last types of loan is the college consolidation loan. This loan is used to consolidate several prior loans into one loan source with one payment to a single lender, rather than having several payments to several lenders. Most students find that they need this type of college loan after they made the mistake of not getting enough funding in an intial loan.
These are the college loans available. Before choosing a college loan, try to figure out how much you need. Then see if you can get any help from your parents, financial aid or scholarships. Be sure that when applying for a college loan that your credit is as good as possible. With some careful thought, you should be able to select a college loan that is right for you.
About the Author
For more information about college loans, the various loans available and college loan calculators visit http://collegeloanresource.com
What is a Business Loan?
A business loan is designed for a wide range of small, medium and start-up business needs including the purchase, refinance and expansion of a business. If you run your own business, it is likely that you will need funds at different points of time...read more
Reaping financial rewards – bad credit home equity loans
Home is the place you inhabit. It is the place where you live, breathe, grow, thrive. It does more than just providing a living space. The moment you build up this house, or moved to your present apartment, you did not realize that you have struck...read more
The Pro's and Con's Of Debt Consolidation Loans
You are swimming in debt. You have 4 credit cards maxed out, a car loan, a consumer loan, and a house payment. Simply making the minimum payments is causing your distress and certainly not getting you out of debt. What should you do? Some people...read more
Return to Home