Finance your tuition with college loans
Windowofworld.com – So, our children want to fly away from the nest and continue their academic life in college. But at ever-increasing costs, can we afford it? Do they have to take part-time jobs to stay afloat or can we supplement their financial needs with college loans?
These are just some of the questions parents and prospective students are asking themselves right now. It’s no surprise when you look at the facts – a 51% increase in fees and tuition fees for public four-year colleges and 36% increase for four-year private colleges in the last decade alone. This, coupled with a disproportionate increase in income for families likely to have college-age children, means an increasing number of parents or students themselves turn to direct loans or private college loans for assistance.
Why do parents and students need extra help?
Every parent and family is notified of their Expected Financial Contribution (EFC) to their child’s further education when they apply for a place. This is calculated minus the government grants and federally supported college loans that will be awarded to students. Every family has many financial commitments and the added support for your child during college may be too much to bear if you don’t have enough savings or disposable income. But all is not lost! There are other sources of financial support available.
How can the shortcomings be covered?
Additional financial support comes in all shapes and sizes. They typically take the form of unsubsidized federal student loans, state-sponsored loans and private sector college loans. It is the last to have experienced the most significant growth in ten years (an increase of 745%) and accounts for $ 10.5 billion in aid used to finance college education.
Available private college loans can be divided into student loans or loans for parents:
o Private university loans from banks and other funding sources.
o Private educational loans from banks and other funders.
o Home equity loans to draw equity off your property. The funds can be used to pay tuition fees.
Is everything worth it?
It is too easy for parents and students to resist the idea of taking out college loans to allow them to continue their education. The cash needed to help them complete their studies for up to four years may seem impossible to raise, but they just need to be aware of the benefits this will bring to their children and America. College educated individuals earn more than secondary school graduates, they also participate more in society and their children will attain higher levels of education too.