Most students today cannot stand the financial burdens of higher education and need some type of financial assistance. Many lenders offer education loans that will help a student complete their education. Loans are also available through the federal government for students in higher education. These loans are great for students because they are usually available at a much lower interest rate than most loans.
Education loans will usually cover any part of education including tuition, room and board, textbooks, computers, etc. Loans can be from a private lender like Wachovia or Sally Mae or the United States government. The Federal Stafford Loan is one of the ones frequently used by those attending undergraduate and graduate school. The amount of the loan will depend on several factors including the student’s dependency status and the amounts of financial aid his or her family can contribute based on income. If the student possessing a Stafford loan drops below half-time enrollment or out of school, he will need to start making payments on the loan.
Another loan that is available is the Federal PLUS loan for parents of undergraduates. This low interest loan is affordable and not based on parental income. It will also cover most school expenses like tuition, housing and transportation.
Before you can apply for an education loan through a private lender, you may have to meet certain criteria such as being a U.S. citizen or permanent resident and have a good credit history.
No matter what type of education loan you receive, you are normally expected to start paying it back after you complete school or when you drop out.
If you already have many education loans, you may want to consider combining them into one loan with a fixed rate and low monthly payment. This can usually be done through a private lender and you can consolidate loans from different lenders. Just ask them about a Federal Consolidation loan.