Whether you are in your first 4 years of college or are attending graduate school you are paying several times more for your college education than your parents and grandparents paid. This increase makes it difficult for students. But there are programs out there that give much needed assistance.

Initially a college student may avail himself of many different programs to pay for college. There are student loans, grants and scholarships and some students must take advantage of all three.

Stafford loans are very popular and there are two types. The unsubsidized loan is a bit more expensive because you are responsible for accrued interest from the very beginning of the loan. Though they cost more, these types of Stafford loans are easier to qualify for. A subsidized loan in which the government makes your interest payments until 6 months after you finish college are of course less expensive because you save on all that interest. However, these loans have stricter requirements, offered only to low-income families.

Here are some websites you can visit to see what you might qualify for:

• http://www.salliemae.com/get_student_loan/find_student_loan/undergrad_student_loan/federal_student_loans/stafford_loans/
• http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp

Graduates, on the other hand, often have fewer options for scholarships and grants just at the time when tuition costs jump. But teaching and/or research assistantships usually more than make up the shortfall. They, in effect, have very low-paying (and very long hour) jobs while attending courses and doing research.

Recently a new option has become available to graduate students: PLUS loans. Though the acronym stands for Parent Loans for Undergraduate Students, they are now an option for many grad students. In the undergraduate case, parents are the borrower and are responsible for repayment. In the case of grad students, they become the responsible party.

The Pluses of a PLUS loan

Graduate students have one advantage that many people do not have. Most of them have not yet had the opportunity to get into a lot of debt and have credit problems. Since PLUS loan approval is based on your credit scores many graduate students are able to qualify.

Do you have plans to attend college, but you don’t know how you will pay your tuition? If so, you may be on the lookout for different scholarship or loan options that would work for you. If you decide that a student loan is a good option, you’ll of course want to get the one that best suits your needs and is the least expensive in the long run.

Government guaranteed student loans are usually the least expensive to students. This is because the government assumes the responsibility for the loan so the lending institution doesn’t have to.

The federal government has been supplying the public with this type of loan service for over fifty years now. They take on part of the responsibility for the loan and that allows that bank to provide more loans with less risk. Lenders don’t take your credit into account with these loans since the government backs them up.

There is also another way the government is involved in guaranteeing the loan. There is a specific kind of loan referred to as the subsidized Stafford loan. With this type of government loan, they take responsibility for the interest on the loan as long as you are in school and for the first six months after completion.

Observably, this is a really good deal for the borrower. It gives you time to work on school instead of worrying about all of the interest you are accruing on your loans. Hopefully, this contributes to a greater percentage of students completing school as well since you don’t have to be concerned with interest compounding.

Subsidized Stafford loans provide students with a six month grace period after they graduate. This allows them to find a good job, get settled, and save a little money before the payments on the loan start.

However now, any loan, whether it is a subsidized Stafford or another loan, which is guaranteed against default by the government, is considered to be a government guaranteed loan. Subsidized Stafford loans are issued based on need.

If you can qualify for these loans, they are definitely the best way to go. They will provide you with a reasonable time period without payments and are reasonable in their interest rates.

What does it mean to be subsidized?

It’s simple:

• Subsidized Loans – Government pays the interest on the loan while you are a student
• Unsubsidized Loans – You pay the interest on the loan while you are a student

Obviously, having the government pay the interest while you are a student does relieve some stress in the life of a student.  And heaven knows that students don’t need more stress:)

But don’t forget that you have to pick up the interest once you graduate from school.  And I highly recommend paying off the loans as fast as possible so that you don’t feel burdened for years.  One way to make extra money to help pay down the loan quicker is by taking 10 minutes a day taking free online paid surveys.

Good luck in your student loan endeavors.

Well how can I establish a credit history if I can’t get a credit card? was a lingering thought during that stage of life.

I was denied a card at several places before I finally was accepted to receive a “student credit card” from my bank where I had been banking for my whole life.  The limit was only for $500 but I was excited nonetheless and eager to begin building a credit history.

Years later, I still felt shunned because I did not qualify for a $2000 loan to buy an engagement ring for my fiancee.  We had to get the loan under my fiancee’s credit which was a little embarrassing.  And what’s even more frustrating is that at that time she was not quite 20 years old and had a couple of credit cards with a $10000 limit between the two of them.  (My first card had only upped my limit to $800 and my 2nd card started me at $1000).

The moral of the story is to start building your credit history as soon as possible.  And don’t be like me and stop trying to build it once you get your first card.  One type of loan or credit card is not enough to get you out of that first stage of no credit history.  And unfortunately until you do get past that stage you are seen with the same scrutiny as someone with poor credit.

Establishing credit and maintaining a good history is important because you never know when you’ll need a loan whether it be for a diamond ring or college or a car.

Life is fun!

Many students finish their education with loans still remaining to be paid off. They, therefore, end up with bad credit, and often with no credit at all. These students can avail of special bad credit student loans granted by the federal government. The interest rates on federal bad credit student loans are significantly low compared to that of personal loans and home equity loans. Poor credit student loans are also available from private lenders. However, their interest rates are generally slightly higher.

There are different kinds of bad credit student loans granted by the federal government. The federal Stafford loan is granted directly to the students. The interest rate is kept low, usually below 8.25%. There is a deferred period for repayment. Students can begin their repayments six months after the completion of their studies. If a student applies for subsidized Stafford loan, the interest amount is paid by the government during the deferred period. If the student has taken unsubsidized Stafford loan, he himself has to pay the interest amount during the deferred period. Another kind of federal student loan is the PLUS (parent loans for undergraduate students) loans. These loans are paid to the parents on behalf of their children. In case the parents cannot qualify for the loans, a qualifying co-signer can come in handy.

The federal government has a provision to grant bad credit student loans through the college. The federal Perkins loan is funded jointly by the college and the government. The interest rate is usually maintained at about 5%. The repayments have to be made to the college.

Bad credit student loans are granted to help students continue with their higher studies. Additionally, the students get a second chance to rebuild their credit ratings. Regular repayment assures an increased the credit rating.

Student Loans provides detailed information on Student Loans, Federal Student Loans, College Student Loans, Private Student Loans and more. Student Loans is affiliated with Private School Loans.

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