Student Loan For College

Student loans for college are necessary for a lot of families, and the sources are numerous, depending upon how much the family can contribute toward a student's education and the credit standing of the borrower. Students can get information on a student loan for college through the school they plan to attend, by contacting their bank, or by looking on the Internet. Federal loans are often the first place families look, and student loans for college are available through the Perkins, Stafford, or PLUS funding programs.

A loan from any of the federal sources has a low interest rate, which is attractive, but there is red tape involved. This money must be applied for between January 1 and June 30 for the fall academic year. In April the awards letter go out, and if the student loan for college is offered, it will be for approximately one-half of what is needed. The family is expected to pick up the rest. Education is important at home and in a university. Proverbs 22:12 instructs parents to "Train up a child in the way he should go: and when he is old, he will not depart from it."

In the years between 1993-94 and 2004-05, the cost of attending a public universities has gone up 51.4%, and private universities have seen an increase of 61.7%. Parents hope their children will be eligible for a full scholarship for college, making this type of funding unnecessary. However, the chances of that occurring are not high. Those who must borrow all or part of the funds needed for college often turn to private lenders. The cost will vary according to the credit rating of the borrower. For someone beginning payments on student loans for college immediately after disbursement rates can vary from 1.5%-10% depending on credit score. Interest rates are calculated monthly, but payments can be extended for a period of four to twenty years with this kind of student loan for college, and no family contribution is expected.

Still another way to obtain this funding is a home equity line of credit. Amounts are available up to the amount of equity the homeowners have in their place at a low interest rate, and they are deductible at income tax time. This is probably a last resort kind of student loan for college for most parents because it places a lien on their home, and if payments are not made for any reason the lender can foreclose on the house. There are enough options for student loans for college that most students who desire an upper level education can get one.