| This article is intended for the more than 50% of | | | | down the student loans you'll need to cover all the |
| college students who need some kind of assistance | | | | rest of your expenses. So let's have a look at some |
| with paying for college. If you're like over half of all | | | | of the more consumer-friendly types of loans for |
| college students, though, finding good loans for | | | | school. |
| school tuition is essential once you've exhausted | | | | Basically, these fall into two categories: private |
| savings, grants, and scholarships. | | | | student loans and government guaranteed loans. |
| Before we explore some of the better loans for | | | | Private loans are made by banks and other |
| school, let's analyze a few of your worst options for | | | | institutions. These loans generally carry a higher rate |
| covering your college education. | | | | of interest than the government loans. Every lender |
| Some Poor Choices | | | | has its own rules. You might need a cosigner, and |
| First off, since they are so widely used: credit cards. | | | | you probably will need a fairly high credit score to |
| True, they are quick and convenient. Also they can | | | | qualify. |
| help you out in a pinch. Realistically, you have to have | | | | Federal loans for school are generally available at |
| them to function in our society. Try renting a car or | | | | lower interest rates, can be repaid over a longer |
| making an online purchase without one! But seriously, | | | | period of time, and offer the option to consolidate |
| for financing your tuition? Only consider them if you | | | | them after completion of college. |
| have a rock-solid plan to pay them back. Otherwise, | | | | There are three categories of government loans: |
| credit cards can annihilate you with oppressive | | | | Perkins loans, Stafford loans, and Grad-PLUS loans. |
| interest rates, late charges and over limit penalties. | | | | Grad-PLUS is short for Graduate student and Parent |
| Another horrible source of funds is check cashing | | | | Loans for Undergraduate Students. |
| stores. When you look at the annualized interest | | | | While each of these programs has its own rules, they |
| rates they are charging, it will take your breath away! | | | | share some similarities as well. One thing they do |
| Seriously, if you use these often enough you may | | | | have in common, though: you must show a need for |
| never recover. Be honest with yourself, if you don't | | | | the money in order to qualify for the loan program. |
| have the money right now, what makes you think | | | | For all of these, you will need to submit a FAFSA |
| you'll have it in 2 weeks? Stay clear of these places! | | | | (Free Application for Federal Student Aid) form to |
| So how about gambling? There are lots of tempting | | | | verify your eligibility. |
| games: poker, roulette, one-armed bandits, dice, | | | | Should You Get a Scholarship or a Student Loan? |
| horse/dog races, and of course the lottery. The fact | | | | Well, DUH! Who doesn't like free money? A |
| is, gambling is very profitable if you're a casino owner. | | | | scholarship or grant is far better than a loan. You just |
| For you, though, this is just a really bad habit to get | | | | might be surprised at how much you can get in grant |
| into. It won't pay your tuition. Don't waste your time | | | | money that you'll never have to repay. Loans for |
| (and money). | | | | school can fill in the gaps when you can't get enough |
| Then there are title loans, where you sign over the | | | | of the free money. Try to keep student loans to a |
| title to your car as collateral for the loan. Typically, | | | | minimum, though, and pay them off as quickly as |
| you will only get a fraction of the car's value, and the | | | | possible to minimize your interest costs. |
| interest rate is quite high. Many borrowers then find | | | | A final word of caution is in order here. If the starting |
| they are unable to repay the loan, and lose their car. | | | | pay in your chosen career is relatively low, try to |
| If you are willing to give up your car for much less | | | | avoid taking out more loans for school than |
| than what it's worth, why don't you just sell the car | | | | absolutely necessary. If that is the case, you may |
| and bank all the cash? At least you'll earn some | | | | want to consider working part time to "pay as you |
| interest instead of paying it. | | | | go" for your expenses. Many students have |
| Some Better Choices | | | | graduated with a debt load that proved to be a |
| Once you have exhausted your possibilities for | | | | heavy burden to carry for years. If you practice |
| getting scholarships or grants, you'll need to hunt | | | | frugality now, you'll thank yourself for it later. |