About College Tuition
College tuition is out of control these days with the tuition for four-year public universities rose 8.3% for in-state students and 5.7% for out-of-state students in the past year alone, and even the private colleges witnessed a 4.5% tuition increase in the past year. It is easy to get intimidated to hear the price of college. College students and their parents always have to come up with measures to pay for the skyrocketing tuition though they protest heatedly throughout the nation.
There are as many solutions as there are problems! A lot of methods are available to pay for college tuition as long as you make your due homework. There are various scholarships, private and public. Federal Student Aid, which serves as a basis for institutional aid in many universities, is free to apply and can help a lot. You can also get help from relatives and friends.
Besides, student loans have grown at double-digit rates for the past decades, helping many students go to their long-cherished universities.
Direct Loan is a type of low interest loan for students and their parent to help with the cost of higher education. Since the loan is administered by the federal government and Department of Education, it is more reliable and more reasonable than private loans. There are many kinds of direct loan, like subsidized loan, unsubsidized loan, plus and consolidation.
For student in school, Student Loan is available. It generally covers a full academic year and you will get the money at the beginning of each semester or the midpoint of your academic year. The loan money can only be used for education expenses and the school will credit the loan to the applicant’s school account and pay for tuition and other college charges first. The applicants are suggested to pay interest while in school so as to avoid repaying too much after graduation. There will be a six-month grace period whether you graduate, drop school half way or withdraw from your academic program.
Parent Plus Loan is a low interest loan for parents whose dependent child is attending at least half time post-secondary education. As long as you are US citizen with good credit score, you can complete a Direct PLUS Loan Application and Master Promissory Note (MPN) to apply for this loan and get money for your child’s higher education, including tuition, dorm fee and other costs. Parents are held responsible for plus loan and they are required to make repayment only 60 after the last disbursement of the loan and it has to be paid within a period of 10 years.
Private Student Loan is also very popular for those worrying about college tuition,despite the current economic situation. In fact, its loan volume is growing more rapidly than federal loans. The interest rate, fees and repayment vary from lender to lender, so that one can’t be more cautious when comparing and choosing the final lender. Some private bank loans or personal loans may require established credit or collaterals, which makes it hardly accessible for high school graduates.
Sallie Mae, Inc. offers student loans for college tuition with competitive interest rate, which varies from LIBOR + 2.00% TO LIBOR +9.88%. It charges no origination fee and prepayment penalties. Three repayment options, including interest repayment, fixed repayment and deferred repayment, offers large choosing space. You can borrow up to 100% of your college tuition and other education costs. Online application is conveniently available.
As a potential college student, you’d better prepare for your future college life as early as possible. That includes living far away from parents, campus life, complicated surroundings, and most importantly, much larger spending than when you are in secondary school.