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Are Student Loans Becoming Required Evils?

Student Consolidation Loan
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Are Student Loans Becoming Required Evils?

The Credit Resourceby Allen Valerio
When it comes to getting a college education most people can agree that the costs can be staggering at best. Even the least expensive colleges in the nation can add up over a four or five year period of time creating crippling debt for those who do not qualify for some of the better grant programs of substantial scholarships.

The problem lies in the fact that the parents of most traditional college students make too much money to qualify for the free financial aid that is needs based and very few qualify for the limited number of scholarships that are available to students based on merit. Even among those that qualify competition and fierce and there are no guarantees. Enter the student loan. There are all kinds of student loans and unfortunately with rising costs associated with college attendence and the growing necessity of a college degree for success in this country it is becoming more and more difficult to pay the price that is associated with higher education. (continued below)

Are Student Loans Becoming Required Evils?

(cont.)
There are three types of loans that are commonly found for college students. They include federal student loans, federal plus loans, and private student loans. Each type of loan has advantages and disadvantages that are unique to that particular loan. Below I will give a little information about each of the loan types and whom they may benefit.

Student loans. There are three different types of student loans: subsidized, unsubsidized, and Perkins loans.

Perkins loans are only available to students who display exceptional financial need. These loans are available at a 5% interest rate and are available to both graduate and undergraduate students. Perkins loans are extended through the university you attend and will be repaid to the university unlike the other types of student loans, which are repaid to the lending agency.

Subsidized student loans are loans in which the interest is deferred until graduation or you cease to be a qualifying student. What this means is that while you are responsible for repaying the loan upon graduation the interest on these loans does not begin to accrue until your begin repayment 6 months after graduation or your cease to be at least a half time student of the university. You must qualify based on your income in order to receive a subsidized student loan. While the needs requirements for these loans isn’t as grave as those required in order to receive a Perkins loan you must still qualify.

Unsubsidized student loans do not require qualification on a needs basis. You must be a student and enrolled at least half time in order to receive an unsubsidized student loan. The good news however for those who do not qualify based on needs for other student loan options is that this type of loan is available to all qualifying students regardless of need. The interest on these loans however begins to accrue immediately, which means they can really add up over time.

PLUS loans are loans that are taken out by the parents of students who need the funds in order to cover educational expenses. The maximum amount that can be borrowed is the cost of attendence minus any financial aid awards the student has already received. The repayment on these loans begins 60 days after the loan is dispersed and the repayment period can be up to 10 years.

In order to cover the costs involved in education that go above and beyond what the government recognizes as acceptable college related expenses you can opt to go the route of private student loans rather then relying solely upon federal financial aid for your student loan source. These loans require that you qualify in order to receive them based on your credit rather than your need and must be used for educational purposes only. With these particular loans you really need to make sure you read all the fine print as different companies offer different conditions and different perks. You should really take the time and compare prices and options before taking out a private student loan and this should be done only as a last resort.

Student loans for many can be the difference in attending college and getting the education you are hoping for and not being able to pay the high costs that go along with higher education. For this reason you should treat them with respect and not take them lightly.

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Student Consolidation Loan

Student Loans – Your Gateway To Achieving Your Goals

Student Consolidation Loan
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Student Loans – Your Gateway To Achieving Your Goals

by Mercy Maranga
Your long awaited dream of joining college is finally here and you are ready to pack your bags and embrace your destiny. The issue of finances comes when you read your acceptance letter and they show the college fees that you are required to pay. If you or your parents had not planned for this, then it can be a setback. This should not worry you though, there are ways to go through college and achieve what you set out to achieve. With college fees increasing yearly, student loans have helped many students gain a brighter and more promising future. (continued below)

Student Loans – Your Gateway To Achieving Your Goals

(cont.)
When you decide to look at this option, it is important that you conduct thorough research. This means that you should collect information relating to the amount of money you will need to fund your education. You should have a basic clue of how much your tuition and fees for the course that you want to pursue are. In addition, you should also have estimates for other expenses like books, travel expenses, room and board, personal expenses etc.

There are various types of student loans so it is important to look for the one that will suit you. It is important that you gather all the facts regarding the various options since the payment plans, grace periods and penalties are different. The types of loans available are subsidized (the government subsidizes the interest rate till completion, depending on your financial need), unsubsidized (interest starts accumulating immediately), direct Plus Loans (Parent loan to Undergraduate Students), private loans and home equity loans.

When you have all the information you will be in a position to make an informed decision and assess the best one depending on your budget. Ensure that you manage your student loan well and repay it when you can.

About The Author
Mercy Maranga writes content on Finance and Finance Management. Visit her site here for more information on Loans and how to effectively manage them.Cash Loans

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Student Consolidation Loan

Benefits of the Direct Student Loan Consolidation

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Benefits of the Direct Student Loan Consolidation

by Michael Carter
What is the average cost of college tuition? This is one question that most parents and future students ask themselves and need to know in order to plan for a college education.

The national average college tuition rate for public universities is $4,694 per year for in state residents. This figure includes both tuition rates and fees for a full time student. (continued below)

Benefits of the Direct Student Loan Consolidation

(cont.)
The average college tuition rate at private colleges and universities is around $20,000 per year in tuition and fees.

Many students take advantage of the low tuition rates of two-year public colleges and junior colleges. The average tuition for a two year school is only $2,076 per year.

College Tuition Increase
While it is good to get an idea of the current cost of tuition, it is also important to understand the expected increase in tuition costs. Parents and students who still have several years before entering college should be keenly aware of the projected estimates rather than the current costs so that they can plan accordingly.

Tuition rates increase at about twice the general inflation rate. On average, tuition rates tend to increase about 8% per year. Some academic years see a greater increase than others and many economic factors come into play when a college decides to increase tuition.

For the school year 2005-2006 many colleges dramatically raised tuition rates. An example of such tuition hikes is at the University of Colorado where tuition rates have been raised for all of the system’s campuses. Tuition at the Boulder campus will go up by 27.8 percent, from $3,480 to $4,446. Other University of Colorado campuses will see a similar increase.

And now the good news…

Even though college tuition rates increase, more students than ever are benefiting from educational aid programs. According to a report from The College Board, “In 2003-04, the amount the average student actually paid for a public four-year institution, after receiving grant aid and education tax benefits, was about $1,300 per student.”

Government grants such as the pell grant provide funding for many college students. In fact for students who attend two-year colleges the grant award may cover the entire cost of tuition.

Scholarship programs awarded by colleges, businesses and non profit organizations are available to help students defray the cost of college tuition. There are many college scholarship programs available and it is becoming even easier to find these programs with the use of the internet.

With a combination of savings, financial aid, and scholarships many students today are able to afford college tuition and further their education.

About The Author
Michael Carter is a contributor at College Financial Aid Guide, an online informational resource for educational funding, scholarships and student loans. Find out about more at: http://www.collegefinancialaidguide.com.

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Student Consolidation Loan

Community College Tuition is Affordable

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Community College Tuition is Affordable

by Michael Carter
Community colleges are local colleges that offer two year degrees and certifications. Students can take classes at community college and earn credits toward a two year or four year degree program.

Community college tuition rates can be quite affordable for anyone wishing to persue a college degree. On average community college tuition is lower than four year universities. (continued below)

Community College Tuition is Affordable

(cont.)
The national average college tuition cost for public universities is $4,694 per year for in state residents. This figure includes both tuition rates and fees for a full time student. The average college tuition cost at private colleges and universities is around $20,000 per year in tuition and fees.

Now compare this to the average community college tuition rate. The average cost of community college tuition is only $2,076 per year. This is less than half than a traditional four year public university and much less than a private college.

Attending a community college will also help offset the costs if a student decides to continue his or her education toward a bachelor’s degree. Since community college tuition rates are lower, students are not as likely to be accumulating student loans which will help their financial state in long term future.

Another factor to consider is that each year tuition rates rise. In fact college tuition costs increase at about twice the general inflation rate, about 8% per year. The future and long term costs are something that all college students, current and future, should consider when choosing a college.

Even though community college tuition rates and four year college costs increase, many students benefit from financial aid programs. Government grants such as the Pell grant provide funding for many college students. In fact students who attend community colleges may qualify for grants that would cover most or all of their community college tuition costs.

Scholarship programs awarded by colleges, businesses and non profit organizations are also available to help students defray the cost of community college tuition. With a combination of savings, financial aid, and scholarships many students today are able to afford community college tuition and further their education.

About The Author
Michael Carter is a contributor at College Financial Aid Guide, an online informational resource for educational funding, scholarships and student loans. Find out about more at: http://www.collegefinancialaidguide.com.