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College Loans: Top 5 Student Loans Are within Reach

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College loans, or more commonly student loans, are sometimes difficult to get because of the requirements, and sometimes the waiting period, but they are definitely attainable for the college students who need them, especially those who live in the low-income status.

Such requirements for student loans, and all college loans, revolve around several factors, namely personal income for the previous year, age, previous grades, necessity, and the availability of funds. Quite often, these factors overlap, such as in the case when the age of the applicant affects the amount of student loans awarded or that applicant’s qualification. In the latter case, the determining factor of income for those who are aged twenty-four and younger generally include the combined income of parents or guardians as well. This consideration will not necessarily spell doom for applicants who need student loans, especially if their parents collectively made less than $12,000.00 the year previous to the one for which the youth is applying.

Several types of college loans exist, from private loans to governmental student loans. The two classifications are subsidized and unsubsidized. With the former, interested is paid by the government, leaving only the principle amount of the student loans to the responsibility of the borrower. In the latter case, however, the borrower is responsible for paying back both the principle and the interest. Unsubsidized student loans are more expensive on the borrower’s pocketbook because the interest per month, compounding the total amount to be paid. Grants, too, are available, and these do not need to be paid back. They generally aren’t as much as the college loans, but every little bit helps.

How does one get affordable colleges loans? That is of key importance to every applicant, especially when income amount (and that of the parents or guardians) comes into play.

Below are the top five affordable student loan resources available to prospective students:

1) The PLUS program (Parent Loans [for] Undergraduate Students). The appealing features include: (1) income level and asset accumulation are irrelevant for eligibility, (2) awards of up to the entire amount of undergraduate expenses, (3) low interest rate of no more than 9% on principle, and (4) a flexible repayment plan that extends the typical duration of ten years. 2) Private Loans. Corporate bodies, such as large companies or banks, provide financial resources for students. Wal-Mart, Inc. and Microsoft are two generously participating entities. Family and friends can offer assistance as well, and with minimal or no interest involved. 3) Federal Perkins Loans. These have low interest rates. The government assists in repayment so long as the student stays in school. Cosigners and good credit are both irrelevant, making these very popular. 4) Subsidized Stafford Loans. The award size is usually considerable and the government pays the interest. Unsubsidized loans are helpful, too, although the applying student is responsible for the interest as well as the principle. The amount available on these, however, is limited per student, so they must be applied carefully and wisely 5) Direct Loans. They have a greater award limit and easy accessibility, but they have a high interest rate. The advantages here outweigh the disadvantage, however, based on the prevalent and prevailing student attitude described as “need it now—it’ll help!”

Prospective students should know that many college loans exist to assist in alleviating their financial needs. All they have to do is the research.


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