Texas Guaranteed Student Loan

Introduction to Texas Guaranteed Student Loan
In recent times¸ the importance and value of a college education has drastically increased. The days when graduating high school marked the end of a student’s academic career are long gone. Today¸ a college degree is essential for most¸ if not all¸ entry level jobs in virtually every industry. Most employers that offer stable¸ well-paying jobs and opportunities for advancement require applicants to have some sort of college education. The continually increasing cost of attending college¸ combined with the rising cost of living and an economy that is still on the downturn¸ makes it incredibly hard for average Americans to afford a higher education. This is where Texas Guaranteed Student Loan or ‘TG’ comes in.

What Types of Loans are Offered by Texas Guaranteed Student Loan?
Texas Guaranteed Student Loan offers a number of federal student loans and loans provided by private lenders. Students can apply for the Federal Family Education Loan Program (FFELP) or the Federal Direct Loan Program (FDLP). Most students prefer federal student loans as they are provided at fixed low rates of interest¸ ranging from 2 to 4 percent. What’s more¸ these loans are guaranteed by the government¸ meaning that students will get their money on time for the entire duration of study. Students facing economic hardship or those who suffer from poor health or a disability can apply for loan forgiveness or forbearance. Those who wish to continue their studies¸ or serve in the military or a selected public service profession can have part of their loan forgiven.

Private loans on offer
Texas Guaranteed Student Loan also offers student loans through private lenders. These loans have variable rates of interest¸ which may go up based on a number of factors including the student or his or her family’s credit history. There are extra fees for late payments¸ and it is harder to obtain loan forgiveness and forbearance. Loan deferment options are limited as well. However¸ having a cosigner with a good credit rating¸ and making payments on time¸ can significantly reduce the amount a student owes.