Introduction to Student Loan Programs
The importance of a college education is no longer an unknown fact. In today’s competitive job market¸ a college degree is an absolute must for most well-paying entry level jobs. But that is not as far as the benefits of a college education go – students enrolled in college develop expertise in a particular area of study¸ and get to broaden their horizons by experiencing life with individuals from different cultures. Over the years however¸ the cost of college tuition has been steadily increasing at five to six percent annually. That is further compounded by the rising cost of living and wage cuts across virtually every industry¸ making it incredibly hard for average Americans to afford paying for college. This is where student loan programs come in – these programs allow students to borrow the money they need for college¸ allowing them to turn their dreams to reality.
What are the advantages of Student loan programs?
Student loan programs differ from other types of loans mainly due to their low rates of interest¸ which are usually under ten percent. Furthermore¸ a student loan program offers a great deal of flexibility when it comes to borrowing limits and repayment conditions. While these loans are required to be repaid after graduation¸ students who are unable to find work¸ or do not make enough to keep up with their payments can apply for deferment or forbearance. They can also apply for loan forgiveness or tax-write offs.
What types of Student Loan Programs are available?
Student loan programs include Federal and private student loans. Students who apply for a federal student loan program can choose between Federal Perkins Loans and Stafford Loans. As compared to private student loan programs¸ these loans are guaranteed by the government meaning that applicants will receive their money and that too at lower rates of interest as compared to other student loans. Private student loan programs are offered by a constantly increasing number of lenders. These loans usually have a higher and variable interest rate¸ and may have other strings attached.
Sources:
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