Going to college is not only a great career move, it also can be very expensive. Students who simply cannot afford to pay for college can apply for a student loan to help with some of the expenses associated with a continuing education.
In the work force, workers who have a bachelor’s degree earn as much as 70% more on than employees who have nothing more than a high school diploma. Getting a college degree is worth the time it takes but, it can be very costly.
According to the Department of Education, more than $66 billion was made available to students in 2009 and 2010, in the form of loans. There are different types of loans that students can apply for before, during and after their time in school.
The very best time to apply for a student loan is in early January. Go to FAFSA.gov to get a Free Application for Student Financial Aid and apply for a loan. A reply will be sent back to you in about four weeks after completing your application.
At FAFSA, the following information is needed to complete an application:
* W-2 Forms and other proof of income
* Federal Income Tax Return – IRS Form 1040
* Dependent students need their parents’ 1040Form
* Current bank statements
* Mortgage and records
* Records of any stocks, bonds and other investments
* Social Security number
The most common types of college loans are listed below.
Federal College Loans
Grants – When grants are given to a student, they do not have to be paid back.
Campus-Based Aid – A Federal Supplemental Educational Opportunity Grant (FSEOG), Federal Work-Study (FWS) and the Federal Perkins Loan programs are administered directly by the financial aid office at school. Check with the financial aid office at your school for information.
Stafford Loans – The William D. Ford Federal Direct Loan Program have low-interest loans for eligible students. Eligible students borrow directly from the United States Department of Education.
Private Student Loans
These are flexibile loans that allow students to borrow the amount needed – up to 100% of the cost of school. With a cosigner, loan approvals are faster, easier and the borrower may qualify for lower interest rates.
Law School Loans – The cost of going to law school can be eased with an education loan.
The Smart Option Student Loan let students graduate with less debt and these loans can paid off much faster.
Medical Schools Loans – Paying for medical school just got easier with medical school loans to help pay for expenses. With a Smart Option Student Loan, students can save hundreds, even thousands of dollars in repayment.
Dental School Loans – Requests can be made for the total cost of attendance, or as little as $1,000.
Student Loans for Undergrads – Like the Private Student Loan, this loan let students borrow the amount they need. Get a 0.25% interest rate reduction if you choose to enrolled in automatic debit monthly payments.
Student Loans For Parents – Get money to pay for your childs’ tuition from Sallie Mae where there are a variety of loans. If you need only a portion or the entire amount, Sallie Mae has all of the information you need.
Graduate Student Loans – This is a significant investment and Sallie Mae offers graduate student loan programs to help students.
Business School Loans – Graduate business school loans from the Sallie Mae Smart Option Student Loan plan. This is a great solution and borrowers can request as little as $1,000.
Subsidized Student Loans – These loans are for students with financial needs and the school will review the results of the FAFSASM application to determine the amount to lend. Interest is not charged during most of the time the student is in school, during scheduled grace periods and deferment periods.
Unsubsidized Student Loans – Financial need is not needed to receive a Direct Unsubsidized Loan. The school will determine the amount you can borrow. Interest start almost immediately and it can be paid to help lower the overall amount of the loan. Or, the interest can grow and be added to the principal amount of your loan – which will increase the amount of the loan.
Take your time and choose the loan type you want – very carefully. There have been several complaints from students about the lifelong obligation of their student loan repayment obligations.