College Scholarships vs Student Loans

admin — Mon, 28 Jun 2010 17:00:33 +0000

There is no way you can compare the value of college scholarships against student loans. Who wouldn’t want a college scholarship that would provide grant money that did not have to be repaid versus paying back money borrowed plus interest. Simply put, a scholarship is your money to spend on college. A student loan is just that: Borrowed money that must be repaid.

A college scholarship is real money that a student is granted to use for such things as college tuition, room and board and other expenses as allowed by the stipulations of the college scholarship. A student loan is money loaned to students for college tuition and other expenses, but students pay interest immediately as soon as the check is used

The best type of college scholarship is one that is granted for all four years of college. These scholarships are called “renewable.” On the other hand, a student loan is typically taken out each year from a loan granting institution or sometimes from the college itself. The interest rate on the loan will vary.

Some loans are called “subsidized” loans. Students who are eligible for subsidized student loans, based on family income, can take a Stafford student loan. The beauty of this loan is that the U.S. Department of Education pays the interest that accrues while the student is in college and for six months after graduation.

Other loans are called “non-subsidized” student loans. These loans are not given based on need, and any student can request an unsubsidized student loan. With a non-subsidized loan students are charged interest from the day the check is delivered. For both loans the principal payments will begin 6 months after graduation, but as mentioned, the non-subsidized student loan would have interest payments due from day one of the loan.

Therefore, it is always in a student’s best interest to take the time to search for college scholarships. This means searching for awards even after they are accepted to a school, and searching for scholarships during college. The goal is to have a student graduate with the smallest amount of debt in student loans as possible. This means taking advantage of college scholarships as much as possible, and covering extra expenses with loans or job income.

By: Phillip Walters

Finding Options For Fast And Easy Private Student Loans For Bad Credit

admin — Mon, 12 Apr 2010 14:20:19 +0000

The gap between your actual cost of education, and the amount granted by the government, can be bridged by a private student loan. However, imagine seeking a student loan with a bad credit score! Nevertheless, even though it may seem impossible to get a fast and easy private student loan for bad credit, there are several ways of getting one, without worrying too much about your existing credit report.

Credit score is an important criterion that lenders keep in mind before extending loans, but you can get the loan if your credit history has been good, besides the present credit problem. Several banks and universities offer private loans to students or their parents, making it easy for them to seek fast and easy private student loans for bad credit.

Drawbacks Of A Bad Credit Report: If you want to avail a student loan on bad credit, you may have to pay a higher interest rate, compared to other private student loan options. Lenders could refuse to approve your loan due to your bad credit history. However, there are many borrowing options that can help you get fast and easy private student loans for bad credit to complete your education.

Funding options:

The funding options for students who seek fast and easy private student loans for bad credit are:

Credit repair: You can opt for a credit repair if you are facing problems in getting a student loan. A lot of student loan providers give credit counseling to students. It is like a non-profit business for them. If you have been denied a student loan from a loan provider, you can go through credit counseling, so that it is possible for you to get fast and easy private student loans for bad credit.

Subsidized and un-subsidized student loans: Many schools and universities offer subsidized as well as unsubsidized student loans. Subsidized loans are given based on the economic needs of a particular student. While, unsubsidized loans are offered to students irrespective of their economic needs. These loans do not require any form of credit checking.

The government pays the interest on the subsidized loans, until the borrower becomes a graduate, and is capable of repaying the loan. On the other hand, students are responsible for the interest payment of unsubsidized loans. There are some loans which are a combination of government funds and funds from the college which the student is applying to.

Consolidation: These loans are ideal for students who want to make their loan repayments easy and affordable. Parents can also look for private education loans for flexible repayment options. This allows them to defer the repayment of the loan until their child graduates.

Grants and scholarships: Many states offer special grants and scholarships for students who are eligible for them. You can check the state government’s education fund for such provisions. These grants or scholarships are given without any credit check.

A credit worthy co-signer: Lenders can extend you loan if you find a credit worthy co-signer. Students can ask their parents to become the co-signer. If the co-signer has a good credit report, there are chances that a loan with low interest rates will be granted. It is important for a student and the co-signer to be known with each other.

Non-credit based loans: These loans can also be helpful in getting fast and easy private student loans for bad credit. For instance, if you are pursuing studies in health science, there are loans designed particularly for such courses. The loan is granted to the students who are considered eligible.

With the cost of education going up each year, it is often difficult for students to fund their education, especially when they have bad credit. You can take advantage of these options to ensure a good education.

However, the fastest and easiest way to seek a private student loan is to maintain a clean credit report, to avoid putting your career at stake.

By: Mike Herman

Student Loan Consolidation » Subsidized Student Loans

College Scholarships vs Student Loans

Finding Options For Fast And Easy Private Student Loans For Bad Credit