What Student Loan Program is Best for You
Most students will not be able to get their entire college tuition paid for using only grants and scholarships. That does not mean the high costs of college tuition has to keep a student from getting his or her education. There are different types of student loan programs that can help fund a student through their college years. The following are a few options that students have when picking a student loan program.
The most popular student loan lender out there (in the United States) would have to be Sallie Mae. There are a couple of different loan programs that Sallie Mae offers. They offer private loans as well as two types of federal loans. Career training loans are available from Sallie Mae at a minimum of $1000. This loans can be used by people that are just starting a new education program or even for those that are continuing their education.
Federal loans that are received from Sallie Mae can usually be used for living expenses as well as paying for college tuition. Living expenses for college usually includes things like a place to live (rent), a computer for school use, and even food. These federal loans offer a lower interest rate than private loans and usually have limited fees.
If you are just starting college or are still an undergraduate, Sallie Mae also offers up on option for Private student loans. Sometimes a student can’t get enough money to cover all of their tuition through federal loans. This leaves Private loans as the next option. Private student loans from Sallie Mae can also be used for all types of living/college costs and fees. Unfortunately, private student loans have higher interest rates which will make monthly payments higher when a student starts to pay them back.
If you plan on studying abroad at some point in your college career Sallie Mae provides International student loans as well. They basically work the same way as other loans but are geared specifically towards students studying internationally. This type of student loan sometimes gives the student different options for setting up a repayment plan then normal student loans.
The United States Governments can also help out a student in need of money for their college tuition. They provide another option apart from Sallie Mae, but it could be more difficult to get enough funds to cover a students entire education costs. These other two options are PLUS loans ans Stafford loans.
If a student needs money for tuition and a Stafford loan is available the student should take because they are usually the best case scenario repayment wise. With fixed interests rates reaching a low 6% and the fact that these student loans can be used for any type of college expense Stafford loans are a popular choice when available. A student will need to fill out a FAFSA in order to be able to receive a Stafford loan.
PLUS loans are the second type of student loan that the U.S. Government gives to students. Like most processes for getting money for college a completed FAFSA is required in order to be in consideration for a PLUS loan. PLUS loans are like other loans in that they are given to undergraduate students, but they can also be taken out by graduate students or parents of a student. As with Stafford loans, PLUS loans offer a low interest rate which makes them easier for the student pay off.
Students may be able to find other options when it comes picking a student loan programs, but there are the most popular option for most students. The cost of a college education can get very costly and not everyone has enough money saved up to cover all of their tuition. So, if your college tuition isn’t covered by grants, scholarships, or out-of-pocket money a student loan is sometimes the only way to go.