College Loans for Undergrad Study
Undergraduate Options
Whether you are coming right out of high school or coming back to college, most likely you will need to borrow money. Many community colleges are affordable, but if you are attending a four year college, the cost shoots up dramatically. Staying on campus will also drive up costs
For many students, working while in school can be too stressful and may cause a loss of focus on education. With zero income, the tuition and housing bills will need to be paid via loans. Always contact your school's financial aid office before making any borrowing decisions.
Federal College Funding
The most popular loan is the Federal Stafford Loan. You can apply online using the FAFSA form. Students with special needs, such as having or coming from a household with low income, can receive great benefits. If applicable, you can have the government pay for all of the interest that accrues on the loan, which is a subsidized loan.
To receive any federal funding at all, you must be attending or planning to attend an accredited school.
Parents can use their credit history and assist with their child's college expenses by utilizing the federal PLUS Loan program. The PLUS Loan can be used along with other forms of student financial aid.
After completing undergraduate study, you may decide to either enter the workforce or continue your education. If you get a job, you will have to start paying for your student loans. It is wise to research loan consolidation to see if it will save you money. If you stay in school, there are also Federal graduate loans.
Private College Funding
Undergraduate federal funding may not apply to all students. Perhaps you reached the maximum loan limit, or you or your family's income is not low enough to be given special consideration.
Banks and other private lenders can usually assist with the extra amount needed. They typically have higher interest rates. Most undergrads are coming straight from high school, therefore having no credit history. With this situation, most student loans will require a cosigner, usually the student's parent.
