Student loans are a valuable tool in financing a college education, especially for those students whose savings, grants, and scholarship offers still fall short of that which is needed to pay for school.
Most college students borrow money in some form or another, or take out student loans from a number of sources.
Unlike free types of financial aid like grants or scholarships, student loans have to be repaid at some point after graduation. Not only does the total amount borrowed need to be repaid, but it also must be repaid with interest. Most undergraduate students spend ten years or more paying back their loans.
However it's important to note that college graduates earn on average $1.5 million more over the course of their careers than co-workers without a college degree.
Undergraduate Student Loans:
Whether a student is entering college right out of high school, returning to school in mid life, or attempting to finish an undergraduate degree, it is likely that some sort of financial aid will be necessary. Well over half of undergraduate students across the nation rely upon some sort of student loan to finance their college education.
For undergraduate students exploring student loans, here are some questions that will likely need answers:
* What types of student loans are available to undergraduate students?
Recent News about Undergraduate Student Loans:
Some of the main sources for undergraduate student loans:
* The Federal government sponsors the Direct Loan Program.
* Federal student loans are also available through the federally sponsored Federal Family Education Loan Program (FFELP) administered through various private lenders such as Sallie Mae and Bank of America.
* You’ll find private student loans marketed by student loan providers and private banking lenders.
* Many states sponsor undergraduate student loans, both FFEL loans and specially packaged private student loans.