Loan Options for College Students

You just finished high school and realize you have two months to work and save up for your very expensive post secondary education. Your parents are willing to help you out a bit, you have a very impressive $4.32 stashed in your savings account, and you have a rewarding job at Wal-Mart 3 days a week. You should be set right? Wrong. College and university is one of the biggest financial commitments you will make during your life. . Most students get a loan of some sort and almost all have credit cards. That's why it's important to know you have options Government Student Loans Here in Canada and in many parts of the world there are government student loan programs which almost anyone is eligible for. The loan amount is usually based on a number different factors including, how much financial support you are receiving from parents, and the total cost of tuition and other fees. The major benefit to a government issued student loan is that most require repayment only after you have completed your studies. However, like any loan, a heavy interest rate is the downside. Student loan through a bank Most major financial institutions offer student loans or student line of credit. There are several benefits to this form of loan. Most often the interest rates are reasonable, and minimal payment is usually expected. Most banks even further the convenience by attaching the loan to an existing account, or by giving you a credit card. Remember, banks "bank" on the fact that you will spend that money. Credit cards Many students rely on their credit card(s) to get them through school. On a short term basis, credit cards are a great source of cash which is easily accessible However unlike a loan, you have to start paying back immediately (monthly), often with outrageous interest rates. Most times, students rely too much on credit cards and find themselves having money trouble before the school year is even finished. And once a credit card is "maxed" and you are unable to pay the minimal payment, additional interest rates and "service" fees are attached. College educations are not cheap. In fact, tuition fees go up by staggering numbers every year. The truth of the matter is, unless you have parents who are willing to flip the bill or some other support, you are likely going to need a loan or some sort of financial assistance. The best advice is to educate yourself. Know what is involved in a loan, know the interest rates, and know your responsibility of payment. A four year education is an awesome financial burden, so it's important to know your options. 5 Benefits of Student Loan Consolidation By Ricky Lim Platinum Quality Author Are you sick of paying interest on your monthly student loans with no end in sight? Afraid of cash-flow problems that may prevent you from paying your student loans on time? I know I was and there is a solution to this problem. It is called student loan consolidation.What is Student Loan Consolidation?Student loan consolidation simply means consolidating all your student loans into a single loan with a monthly payment plan. Effectively, all your previous student loans are written off and a new student loan is created which you have to pay off monthly. Benefits of Student Loan ConsolidationHere are some of the benefits of student loan consolidation 1. Lower monthly paymentsBy consolidating all your student loans into one loan, you only need to pay off one loan monthly instead of several student loans monthly. Thus, your monthly payment is lower2. Pay only one loan monthly instead of several student loans monthlyIt is a lot easier if you have to manage only one student loan instead of several student loans with different payment deadlines. Also, sometimes with many student loans, you may ended up forgetting to pay one student loan.3. Low, fixed interest rateBy consolidating your student loans, you will be able to take advantages of low, fixed interest rates. Currently, by law, student loan consolidation rates cannot exceed 8.25%. Furthermore, national interest rates are at a 40-year low therefore this is a good time to get one. 4. No credit card check or processing feesNo credit card check is required during the application of a student loan consolidation. The payment plans and terms are usually quite flexible in that they can customize it according to your financial standing. 5. Make monthly student loan payment electronicallyWhile it is not necessary to make payment electronically, most lenders will knock 0.25% off your student loan rates if you make payment electronically. Also, using direct debit from your bank account will prevent you from forgetting to make a payment.Sometimes it can get quite confusing as to the qualification of applying for a student loan consolidation. The official stand from the government is that students who are still in their grace period or who are still studying in school may qualify for government student loan consolidation. The government student loan consolidation nowadays are quite competitive compared to private sector, therefore I would recommend going for a government student loan consolidation. With so many benefits of getting a student loan consolidation, it is quite obvious to save money in the long run is to get one.Ricky Lim works in a finance company specialising in student loan consolidation. Get more information, tools and resources on student loan consolidation, visit this site: about-studentloan.comArticle Source: EzineArticles.com/?expert=Ricky_Lim