Private Education Loans Great For When The Savings Doesnt Pay
Owning a home, driving a new car and having a college education have long been considered signs of success in our culture. Continuing your education is a great way to ensure a better future for yourself. It used to be that a larger percentage of new college and university students would have most of their schooling paid for by their parents. We'll see why that's the case and how private education loans can help make higher education a reality.
The weak economy is one reason why parents aren't able to pay for their children's education. Even if they want to, the reality is that lower wages, higher debt and a higher cost of living can prevent them from paying for tuition. And those who can pay something are often not able to pay as much as they would have just a few years ago.
Another reason why private education loans are being more sought after is because tuition rates keep climbing. That means parents that saved diligently to send their kids to college are suddenly finding that their savings doesn't go as far as they thought it would.
College isn't just for young adults anymore. The average age of college students keeps rising and older adults are attending school more than ever before. In other words, more students aren't in a situation where they would expect their parents to contribute anything toward their tuition.
As you can see, paying for college is a serious concern for a lot of people, but there is some good news, and that comes in the form of financial aid. Any money you can get to help pay for school falls under the umbrella term 'financial aid'.
Private education loans are a good choice because they can be added to state and federal grant and loan programs. New students enrolling in college are encouraged to complete a FAFSA (short for Free Application for Federal Student Aid) form. This makes it easy to apply for several programs all at the same time.
There are no guarantees, but most students get some form of assistance. However, it is rare that the FAFSA form will give you 100% of the money you need to cover tuition. That's where private education loans come in.
Such loans are typically taken out by the parents of the student, or the student themselves. It's similar to taking out a large loan for just about anything else, and is considered to be an unsecured loan. All that means is that there is no physical collateral that the lender can take from you in the event you default on the loan.
It only makes sense that you need to have pretty good credit to get private education loans. That being said, some lenders will offer special deals on loans for schooling. It may not be easy to find those deals, but they are out there and well searching for if it means you can get the education you want.