Education Loan What You Need To Know

Education Loan What You Need To Know

Education Loan – What you​ Need to​ Know
The strength of​ the​ United States is​ not the​ gold at​ Fort Knox or​ the​ weapons of​ mass destruction that we have,​ but the​ sum total of​ the​ education and the​ character of​ our people - Claiborne Pell
Education loan is​ perhaps the​ most noble loans of​ all considering that the​ loan is​ going to​ create and grow a​ student into a​ responsible future citizen who can contribute to​ the​ society in​ a​ big way.
American college graduates have earned $1million more than high school graduates during their entire career .​
This simple statistic is​ enough to​ underline the​ significance of​ education .​
What one must not forget,​ in​ the​ brouhaha of​ course,​ is​ that college education is​ quite an​ investment in​ ones future even after considering the​ huge expenses involved.
Where and How of​ Education Loan in​ America
The Federal Government has various student aid and loan programs,​ to​ help pay for both undergraduate and graduate education,​ which it​ helps get at​ low rate of​ interests .​
Here are some of​ them.
1. Federal Perkins Loan: This is​ a​ low interest loan (5%) and the​ school is​ the​ lender to​ which you​ payback .​
Maximum amount you​ can draw as​ an​ undergraduate is​ $4000 per year and $6000 per graduate student per year .​
The total amounts in​ each case being $20,​000 and $40,​000 respectively .​
Barring late charges there are no other charges.
2. William D .​
Ford Federal Direct Loan Program: An FSA program for after high school students where Department of​ Education is​ the​ lender .​
You have 2 programs,​ Stafford- for students and PLUS- parents .​
PLUS loans offered through FFEL have banks and private lenders to​ provide.
3. Consolidation loans: Direct loans can be consolidated for reduced and easy monthly repayment through this loan.
4. All private banks: Banks have countless schemes which are more or​ less similar to​ Federal schemes.
How Much Loan Should I​ Borrow
Here students and parents should sit and plan the​ amount to​ be borrowed .​
You can calculate loan amount in​ two ways .​
One: using an​ online calculator; the​ other way is​ compiling it​ yourself .​
Compiling the​ loan amount is​ not difficult with certain amount of​ homework .​
Some tips here.
1. Decide on​ the​ course and college .​
Public colleges charge about 1/4th of​ private colleges in​ tuition fees for 4 years degree and half of​ it​ for 2 years degree.
2. There is​ additional Out-of-District State Charges in​ case of​ 4 year public colleges which run into about $7000.
3. There are sundry expenses including board,​ books etc which run into $10,​000 in​ both the​ cases.
Once you​ are through with calculation,​ visit the​ lender or​ its website for information on​ documentation and application.

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