The Rising Cost of College Education and Surviving Student Loans

The Rising Cost of College Education and Surviving Student Loans

Going to College? Public colleges and universities have joined the mainstream of schools with ever increasing tuition fees, making earning a college diploma similar to the quest for the Holy Grail. To give you an idea, a college degree can cost $17,000 sans grants in the least and some $60,000 if you are no scholar in an Ivy League school. Now it's clear why student loans exist. The cost of a college diploma refers to the total expenses -both billed and unbilled. Costs not billed in your student slip are books, supplies, travel and personal expenses to include tons of pizza and trips to the Laundromat. You might also be paying room and board if you are studying in another state. If you want specifics, try a college search to see the whole picture and decide if you'll be needing grants and student loans to afford a diploma. Canadian and US citizens enjoy federal funded student loans with zero interest for a period. Yet they still get part-time jobs for living expenses, as they still have to eat and pay other school expenses not incorporated into the federal loan. What if you are not qualified for a federal student loan? Getting and Surviving Student or Personal Loans Fortunately, private lending companies are offering lower interest rates for student loans. However with this privilege comes a responsibility. You have to pay your loan the moment you graduate and land your first job. Private lenders issuing personal loans offer student loans for students who have part-time jobs or who can have their co-signed by their parents. The loan is similar in many ways to a personal or payday loan. To qualify you have to meet the following: * Earn a minimum wage requirement of $1000 * Proof of 6 months employment * Own a personal checking account, * 18 years old or older * A resident of the locality where the lender is based You do not need proof of residency to get a loan but you have to provide contact information and the latest proof of billing to validate your address. Ask your parents what it is like to live with a mortgage hanging over their heads or credit card interests piling up. You parents can only tell you that it takes a lot of sacrifices and personal integrity to pay up loans. Here is what is in store for you if you default on your loan payments: * Accruing interest rates that would make the repayment of the loan a lifetime burden. * Blemished credit scores that would affect future loans for a house purchase. To survive your loans, do the following: * Borrow only the amount needed * Be careful with your spending * Pay the loan on time to prevent additional fees and charges which you cannot afford * Borrow only when you need money for school expenses * Be honest about your capabilities to pay the loan before anything else Student loans should not be taken lightly. As early as now, you are already shaping your credit worthiness, so do not waste your chances.