SOME HOMEWORK ON STUDENT LOANS

Despite the old clich? a college education really does improve your chances of getting a higher paying job. But the way tuitions are skyrocketing you may not get the education you need without student loans.

Student loans come in three forms. Subsidized (the federal government defers interest while you are attending school), unsubsidized (interest accrues during attendance) or private (available from sources other than the federal government).

COURSES OF STUDY

The best of the federal student loans is the Stafford Loan. It is subsidized and offers the lowest interest rate. For parents there is the PLUS loan, which is more affordable and widely available than even most private loans. Bear in mind your household income and credit history are scrutinized when you apply for federal student loans. Only those who qualify “in need” will get the best loans.

As far as private student loans go, banks, credit unions and other lending institutions offer many ways to finance an education. Interest rates are usually higher but, because they do not screen applicants based on credit history and income, they are much easier to obtain than a federal loan.

EXTRA CREDIT

When applying, like in college itself, promptness is important- at least eight months before you plan on attending classes. And finally, no matter how you feel about student loans, please check with the financial aid office at the college of your choice. They will know what form of financial aid is best for you.

ABOUT THE AUTHOR:

Carl Dupre is a successful writer who lives in Rhode Island with his wife and two children.