College Loans: Helping You Reach Your Goals
If you're unable to meet all your college costs through other means, such as scholarships, current family income and savings, then saying yes to a college loan can be a smart move.
Students and their families depend more on federal college loans than on any other source of financial aid. In 2010-11, 34 percent of undergraduates took out federal Stafford Loans, adding up to about $70 billion.
Invest in Your Future
When you take out a college loan, you invest in your own future. As an investment, college yields generous economic and personal returns. Once you graduate from college, your career opportunities and earning potential increase significantly.
Getting a college degree gives you more careers to choose from. Also, many of the higher-paying jobs of the future require a college degree as a starting point.
Advantages of Need-Based Loans
When you take out a college loan, you invest in your future. In one sense, education loans are just like any other form of credit: you must repay the money you borrow — with interest. However, the terms and conditions of need-based federal college loans (such as the Perkins and the subsidized Stafford) make them uniquely attractive.
If you qualify, it's almost always a good idea to make these your first-choice loans. Here's why:
- They have low interest rates, making them less expensive to repay than other loans.
- You don't need a credit history to qualify.
- They're flexible. No payments are required while you're in college and, depending on the loan, for a grace period of six to nine months after you graduate.
Consistent Funding Sources
Since the early 1950s, college loans have helped millions of students achieve their dream of graduating from college. They have stood the test of time as reliable, consistent funding sources, helping students attend the college of their choice.
There are many kinds of college loans. Learn about your college loan options and how to tell them apart.
