Education Loans - What You Need to Know

Education loans are a real blessing for many students and their parents. With the ever increasing cost of a four year college degree, it is now as much as the price of a new car or, even as much as a house in some areas of the country. Education loans are not just for high-end super achievers who need only one alternative or a supplement to their jobs. It can be the main source of funding and the determination as to weather or not many students are able to attend college. There are a variety of venues from which to acquire loan money for school. Here are the four main sources from which you can obtain a college loan.

FEDERAL LOANS – are available in two types, need-based (like the Stafford Loan, with affordable, low interest rates, deductions, and discounts) and non-need-based (like the Federal Plus Loan, a loan for parents with undergraduate student children, with borrowing allowances up to 100% of the total college costs, with discounts, and with tax-deductible features) are probably the most affordable education loans.

I highly recommend the use of government student loans because they help many needy students every year who would otherwise be unable to complete a degree program. Some examples of students benefiting from Federal Education Loans are: students who have only one living parent have been granted monies for finishing college; students with elder or aging parents have been awarded loans to continue their excellent work; and students who are on their own have been loaned government money that helped them get through the demands of college when the money was important enough to distract them from completing their education program.

PRIVATE LOANS – are education loans for students going to private k-12 schools or private colleges. Private student loans can take the place of or supplement federal aid. They typically offer deferred interest while students are still in school, budget-friendly repayment options, and easy application processes. With all of these benefits, private education loans may be a viable option for some students or parents.

TEEN ESTEEM LOANS – are made available by a program started by the Teen Esteem Foundation to reduce teenage drug abuse, pregnancy, and suicide. These loans are offered by the primary loan institutions who also emphasize involved, concerned support of families and who offer a user friendly financial aid process.

CONSOLIDATION LOANS – are those loans which are available after college: they help the borrower/graduate reduced payments on education loans by combining all of the educational loans together using one loan institution. And even better for those who have already consolidated, some loan lenders enable the borrower to refinance the loan bundle at the most current and more affordable loan rate(s). So be sure to ask!!!

That is, once you wrap your brain around the numbers, percentages, statistics, and requirements, and once you have an eye on the most beneficial of education loans, ask as many questions as you need to before you sign on the dotted line. And while you’re filling out forms (of which, be forewarned, there are many), start filling out scholarship applications, too!