Claiborne Pell said, "The strength of the United States is not the gold in Fort Knox or the nuclear weapons we have. It is the education and character of our people as a whole."
Education loans may be the most honourable loans because they help a student become a responsible adult who can make a big difference in society.
Over the course of their careers, American college graduates have made $1 million more than high school graduates. This simple number is enough to show how important education is. Even with all the fuss, it's important not to forget that going to college is a big investment in your future, even if it costs a lot.
Where and How to Get a College Loan in the U.S.
The Federal Government has a number of student aid and loan programmes to help pay for college and graduate school. It helps students get low-interest loans for both undergraduate and graduate school. Here are a few examples.
- Consolidation loans: This loan can help you pay back your direct loans more easily and with less money each month by combining them.
- The Department of Education is the lender for the Federal Direct Loan Program, which is an FSA programme for people who are still in school after high school. You have two programmes: PLUS for parents and Stafford for students. Banks and other private lenders can offer PLUS loans through FFEL.
- Federal Perkins Loan: This is a loan with a low interest rate (5%) that you pay back to the school. As an undergraduate, you can get up to $4,000 per year, and as a graduate student, you can get up to $6,000. In each case, the total amounts are $20,000 and $40,000, respectively. Except for late fees, there are no other costs.
- All private banks: Banks have a lot of plans that are similar to Federal plans in some way.
How much of a loan do I need?
Here, students and their parents should sit down and decide how much money they want to borrow. There are two ways to figure out the amount of a loan. One way is to use an online calculator, and the other is to put it together yourself. Putting together the loan amount is not hard if you do a little bit of homework. Here are some tips.
- Choose the course and the school. When it comes to tuition, public colleges charge about a quarter as much as private colleges for a four-year degree and half as much for a two-year degree.
- Out-of-District State Charges, which add up to about $7,000, are added to the cost of a 4-year public college.
There are other costs, like room and board, books, etc., that add up to $10,000 in both cases.
After you're done with the math, go to the lender or its website to find out what documents you need and how to apply.
