College Student Loans
College Student Loans
September 2007, college students received some relief in terms of federal college aid. President George Bush approved legislation to raise grant awards and cut subsidies to lenders that provide federally guaranteed college student loans.
In all, the new law offers borrowers of non private college student loans forgiveness under certain conditions. Specifically, borrowers who graduated from their studies and have worked for 10 years or more in a public service profession (such as teaching) may now qualify for loan forgiveness. The legislation also slashes student loan interest rates in half during the course of four years. Lastly, federal Pell Grant limits will rise to $5,400 per student from $4,310 within the next five years.
College student aid continues to be necessity among students. From community college attendees to private four-year students, education loans and grants are used to pay for hefty tuition bills and rising living expenses.
Currently, students have the ability to earn school scholarships, state grants, federal grants, federal college student loans, and private money loans. Until recent years, scholarships, federal aid, and state aid were the primary sources of funding for college. Today, however, many students find themselves seeking private college financing to help pick up where federal funding stops.
While this new legislation serves as proof that the United States government is actively working toward federal financial aid reform, today’s cost of attendance still outweighs current limits on federal aid, loans, grants and other college student loans.
The use of private education loans now accounts for 25 percent of all student loans. Private lenders have stepped up to the plate to offer students a way to make ends meet. Private loans, unlike federal funds, require a credit check. Students who find they are not eligible for a loan due to their credit can utilize a credit-worthy co-signer to obtain the loan. A co-signer can also be used to push down the interest rate on a private loan.
