Are Student Loans Becoming Necessary Evils



Are Student Loans Becoming Necessary Evils

Are Student Loans Becoming Necessary Evils?
When it​ comes to​ getting a​ college education most people can agree that the​ costs can be staggering at​ best .​
Even the​ least expensive colleges in​ the​ nation can add up over a​ four or​ five year period of​ time creating crippling debt for those who do not qualify for some of​ the​ better grant programs of​ substantial scholarships .​
The problem lies in​ the​ fact that the​ parents of​ most traditional college students make too much money to​ qualify for the​ free financial aid that is​ needs based and very few qualify for the​ limited number of​ scholarships that are available to​ students based on​ merit .​
Even among those that qualify competition and fierce and there are no guarantees .​
Enter the​ student loan .​
There are all kinds of​ student loans and unfortunately with rising costs associated with college attendence and the​ growing necessity of​ a​ college degree for success in​ this country it​ is​ becoming more and more difficult to​ pay the​ price that is​ associated with higher education.
There are three types of​ loans that are commonly found for college students .​
They include federal student loans,​ federal plus loans,​ and private student loans .​
Each type of​ loan has advantages and disadvantages that are unique to​ that particular loan .​
Below I​ will give a​ little information about each of​ the​ loan types and whom they may benefit .​
Student loans .​
There are three different types of​ student loans: subsidized,​ unsubsidized,​ and Perkins loans .​
Perkins loans are only available to​ students who display exceptional financial need .​
These loans are available at​ a​ 5% interest rate and are available to​ both graduate and undergraduate students .​
Perkins loans are extended through the​ university you​ attend and will be repaid to​ the​ university unlike the​ other types of​ student loans,​ which are repaid to​ the​ lending agency .​
Subsidized student loans are loans in​ which the​ interest is​ deferred until graduation or​ you​ cease to​ be a​ qualifying student .​
What this means is​ that while you​ are responsible for repaying the​ loan upon graduation the​ interest on​ these loans does not begin to​ accrue until your begin repayment 6 months after graduation or​ your cease to​ be at​ least a​ half time student of​ the​ university .​
You must qualify based on​ your income in​ order to​ receive a​ subsidized student loan .​
While the​ needs requirements for these loans isn't as​ grave as​ those required in​ order to​ receive a​ Perkins loan you​ must still qualify.
Unsubsidized student loans do not require qualification on​ a​ needs basis .​
You must be a​ student and enrolled at​ least half time in​ order to​ receive an​ unsubsidized student loan .​
The good news however for those who do not qualify based on​ needs for other student loan options is​ that this type of​ loan is​ available to​ all qualifying students regardless of​ need .​
The interest on​ these loans however begins to​ accrue immediately,​ which means they can really add up over time .​
PLUS loans are loans that are taken out by the​ parents of​ students who need the​ funds in​ order to​ cover educational expenses .​
The maximum amount that can be borrowed is​ the​ cost of​ attendence minus any financial aid awards the​ student has already received .​
The repayment on​ these loans begins 60 days after the​ loan is​ dispersed and the​ repayment period can be up to​ 10 years.
In order to​ cover the​ costs involved in​ education that go above and beyond what the​ government recognizes as​ acceptable college related expenses you​ can opt to​ go the​ route of​ private student loans rather then relying solely upon federal financial aid for your student loan source .​
These loans require that you​ qualify in​ order to​ receive them based on​ your credit rather than your need and must be used for educational purposes only .​
With these particular loans you​ really need to​ make sure you​ read all the​ fine print as​ different companies offer different conditions and different perks .​
You should really take the​ time and compare prices and options before taking out a​ private student loan and this should be done only as​ a​ last resort.
Student loans for many can be the​ difference in​ attending college and getting the​ education you​ are hoping for and not being able to​ pay the​ high costs that go along with higher education .​
For this reason you​ should treat them with respect and not take them lightly.

Are Student Loans Becoming Necessary Evils





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