| When most students plan for college they are hoping | | | | federal loans also give the best interest rates around. |
| to gain a scholarship that will take care of the entire | | | | A smart student will try to get a federal college loan |
| education. Of course this rarely happens and they are | | | | and also another to borrow the amount needed |
| also hoping that their parents can help out a little. | | | | rather than seeking just one loan. |
| When both of those options don't take care of the | | | | When you have a state or private college loan you |
| entire college program there are always college loans. | | | | are seeking a loan that is easier to get, but also |
| As a last resort or even a first option there are | | | | increases the interest rate. Most federal loans are |
| many reasons why college loans can help out | | | | going to be around 2 to 4%, while others can be as |
| students. College loans are designed to help the | | | | high as 10%. This is not the best option when |
| student get the secondary education they need to | | | | considering the amount you may have to pay back. |
| succeed in the world. Chances are when you have a | | | | However in some cases a person is not eligible for |
| college loan you are going to be looking for the best | | | | the federal college loans so they must go elsewhere. |
| loan out there. You have many options from federal, | | | | When you go elsewhere there are things you should |
| state, and private loans. You will find that each has its | | | | look for. First see what interest rates are out there. |
| benefits and disadvantages. | | | | You will also want to check the company you are |
| First a federal college loan or Stafford Loan is going | | | | dealing with. Do they work directly with a bank or |
| to require a FAFSA report. This report not only looks | | | | are they a middle company? Is the loan through the |
| at the college student, but also the parents. The | | | | state? State loans can be nice, but they can only be |
| report will tell the government how much the parents | | | | consolidated when you have several loans with the |
| make, what they can contribute, and what the | | | | same place. They won't consolidate other loans for |
| student can contribute. This usually makes the federal | | | | you. Consolidating is important for locking in an |
| loan the least amount of loan you can have. In other | | | | interest rate and a lower monthly payment. |
| words the amount borrowed is usually a couple of | | | | College loans are designed to help us. However there |
| thousand dollars a year and will of course depend on | | | | are scams out there and you have to double check |
| the school you have chosen to a degree. In some | | | | with the company you are trying to borrow from. |
| instances the government loans may not work for | | | | Remember if it seems too good to be true it usually |
| you based on your parent's income. This can be | | | | is in the end. |
| difficult for those that really can't afford school. The | | | | |