The right to an education is available to all who qualify to attend college. In most cases a student is looking at a huge expense when considering embarking on a college education. Unless your parents’ middle name is ‘lots of cash in the bank’ you are most likely have to take out loans to finance your way through college. This can be a daunting prospect as although the funds will allow you to gain your education, they will need repaying when college is finished.
It could well be worth shouldering the loans knowing that you will face a long hard struggle to pay then back, if you consider that the price of the loan is worth the investment in your education. By graduation it will give you an advantage when stepping into the job market which you otherwise might never achieve.
The good thing is that the government offers federal loans at preferential fixed income rates to students. Everyone can apply and they are not credit based, so if you have no credit history, or even a bad credit history, you can still be eligible. As they are not credit based the loan is extended to you alone. There is no need to burden a third party with the necessity of co-signing the loan, which is a huge responsibility for anyone to assume.
The most common student loan is the Stafford loan. There are two on offer, subsidized and unsubsidized. The first one is the cheapest option as no interest is applied until you finish college. The second loan does add interest from the time the loan is dispersed to the school. The subsidized loan is means based and the school will make the decision on awarding a subsidized or unsubsidized recommendation to the loan body.
To qualify for either of these federal loans the student must first complete a standard FASA form. They must be accredited to a school, be over eighteen, and enrolled in a course of study. It could be that there is an ‘expected family contribution’ based on the income and circumstances of the family.
Another loan option to pursue is also needs based and not credit scored, the federal Perkins loan. This is especially suited to those going into some vocational professions as it is possible to partake in their forgiveness terms program. It is worth examining this to see if you are likely to meet the requirements of forgiveness.
No private student loan will be forthcoming without the loan being endorsed by a third party, unless you are a mature student with a good credit history. Federal loans are without doubt the best option to pursue as they do not implicate anyone else in your future debt or cause friction with relatives as possible co-signers.
By opting for a federal student loan the responsibility for the loan sits squarely on your own shoulders. There is no co-signer to consider, or to bail you out if things get tough. If you feel mature enough to understand the implications of taking on such a loan, and fully intend to find gainful employment to pay it back, then investing these funds in your future education could well be worthwhile and a good financial investment to make.