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Saving for College
Are student loans a good idea?
by Chris Parry (Write for us!)
(Click on the links within the article to get definition of that word)
If the specter of the cost of your child's post secondary education is looming over your head like an
impending danger,
then you are hardly alone in feeling worrisome. The financialcosts of college and university in the United States are
growing astronomically, just as the importance of having a college or a university degree. The dilemma become strikingly
clear: you have to go to university in order to obtain a good job, but you seem to have to have a good job to be able
to afford to go to university in the first place. It's a serious problem in America, and unfortunately the result of the
whole system is that generations of people who should be going to university to learn and become better citizens are
instead entering the workforce and not fulfilling their potential. A less intelligent society as a result? Maybe.
This, of course, adds to your worries as a parent. The last thing you want is for your child to be left behind, to be one
of the many who doesn't make it to university because he simply can't afford it, but just how are you going to make
it happen in the face of such enormous fees? Well, one answer, as old as some universities themselves, is to apply
for a student loan. Being able to ensure that
your child will be accepted for student loans and other forms of student
aidmoney is usually dependent on your ability to demonstrate that you are in need of financial assistance. Householdincome, plus the number of years in which your son or daughter will be at university, are all part of the application
process, and will likely determine whether or not you can receive the funds or not. Normally there are certain programs
which offer you a greater chance of receiving a loan if you are enrolled in them, but this probably isn't going to
(and shouldn't really) govern what kind of degree or program your child wishes to pursue.
When you apply for federal student loans as a parent, the payments on the loan will start immediately, assuming everything
is in good standing. This shows an important difference between a student applying for his or her own student loan,
which usually doesn't usually start its payment program until
after graduation and a parent applying for one on the
behalf of the student. Of course, it is much harder for students to receive a loan by themselves and there is
lesser money out there to be given out in such loans. This makes is tough, but not impossible to receive a student
loan that will improve your financial situation. At the present time, interest rates on student loans are
quite high - somewhere in the region of 8% - and therefore, determining if you are going to be able to pay back
the money borrowed is essential to whether or not you are approved to receive one. The size of the loan
(i.e. the amount borrowed) is also an important factor.
Researching different student loan programs and making sure the possibilities of scholarships and bursaries have
been exhausted is essential before you even consider a student loan for your child's college education.
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