Comparing Federal and Private Loans Evaluating Lenders and Offers Assessing Your Finances Community Q&A With the price of education skyrocketing these days, especially in the U.
S., student loans can be an onerous burden for many adults just starting their careers.
While it is possible to secure a private loan for your post secondary education, Federal Student Loans are still the best resource for your college financial needs.
These low interest Federal loans offer a substantial benefits as compared with private lenders.
If you secure a Stafford Loan or Perkins Loan, upon completion of your studies you may be eligible for loan consolidations that will allow you to extend your repayment schedule from 10 years to 30 years while securing a locked in low interest rate.
In accordance with Congress' Higher Education Act both the Stafford and Perkins loan programs offer student loan forgiveness options that are available to graduating students who enroll in public service programs or take positions teaching in low-income school districts.
But even with scholarships and Federal grants, most students will face a gap in their college fund that requires a student loan of one form or another.
Whether you pursue a Federal loan or a private lender loan there are benefits and disadvantages that all student borrowers need to consider.
Having said that, student loans are often necessary to make it possible for a young person to fulfill their college dreams.
Student debt has reached an all-time high in the U. of late, with an estimated 40 million people now owing an average balance of ,000, according to credit report company Experian.
With student loans soaring, debt-saddled students and graduates are desperate for any strategy that may help them escape their burden.
We've established that the preferred type of low interest student loan is a Federal loan.
Now let's concentrate on the two types of Federal loans that offer manageable low interest rates and repayment plans along with other substantial benefits to students struggling to finance their higher education.