Do not worry about cost of college tuition because government student loans can help you finance your education.
Making a decision to go to college is life changing because you will have the opportunity to pursue a higher paying career versus those that do not attend college. In preparing to go to college, you may be amazed at the cost of attendance. The good news is that there are financial resources, including student loans, to help you pay for your education. If you are worried about your credit and ability to obtain student loans, there are loan options that allow you to apply without using a co-signer, including Perkins, Stafford and PLUS government loans.
Government vs. Private Loans
Government student loans have become a better option for students in financing their education because of better interest rates and repayment terms. Government student loans offer around 5 percent fixed for the life of the loan; whereas, private student loans usually charge more than 5 percent because the interest is variable, meaning interest rates can go up and down during the life of the loan, according to Student Loan Network. Private student loans may not offer deferment repayment plans, whereas, government student loans can be deferred as long as you are enrolled in school.
Perkins Loans
If you are of financial need, you may qualify for a Perkins loan. Schools actually administer these loans through funds the school receives. There is no credit requirement so a co-signer is not needed, but you must be able to demonstrate financial need. Unlike the other government loan programs, Perkins loans do not have an origination fee and the interest rate is capped at 5 percent, as of 2011. With in-school deferment options, Perkin loans can be good financial options to finance your education.
Stafford Loans
All students are eligible for Stafford loans. This loan program, administered by the Department of Education, provides loans with no credit check. The amount you can borrow under this program depends on your dependence, student status and years in college. Medical students are also able to obtain more loan money than students pursuing an undergraduate or graduate degree.
Plus Loans
The PLUS loan, or Parent Loan for Undergraduate Students, is a loan provided to parents to help finance your education. To qualify for the PLUS loan, you must be a dependent, undergraduate student. Your parents will undergo a credit check for this loan and adverse credit will be considered in determining loan eligibility. If you are able to obtain enough loan money to cover your tuition through the other government programs, try to avoid the PLUS loans because of the additional credit requirement.
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