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Loans education
Theoretically speaking you cannot ignore the fact that the cost of a college loan education has soared through the roof. No one can deny the fact threatens to make a higher education for pursuing a dream career an impossible task. Because of this simple reason, students and their parents are compelled to opt for education loans.
If experts are to be believed student loans have become a part of life. Theoretically speaking this is no wonder, considering the facts and figures that clarify the earning potential of college graduates. In addition there has been a series of nationwide surveys on student loans and their implications. Believe it or not the fact is that each loan education graduate ended up earning $1 million (according to the United States Census Bureau) more throughout his/her career than a high school graduate.
The Advantages Point to be noted in this regard is that many people are confused as to whether they will be ever able to repay their loan education completely, given the high rates of interest on various student loans. However, fact remained that the advantages of taking out a student loan may far outweigh the costs:
1. First and foremost college educated people advance higher and faster in their careers. 2. On the other side of the coin the average earnings of the college educated are $2.1 million and this figure is $1.2 million for high school graduates. Still, it is worthwhile remembering that considering one takes out a Federal Perkins Loan (current interest rate of 5% per year), and borrows the maximum amount permissible, which is $40,000, the total repayment you would make over a 10-year term would be somewhere close to $51,000. 3. In simple terms contrast this against average salaries of college graduates. It is worth pointing that a nursing job would get you $38,788; Chemical engineering $53,659. 4. There is no denying that salaries are increasing steadily at a healthy pace from 11.2% for elementary school teachers to 5.3% for civil engineers and 2.1% for chemical engineers. The question now arises: How does it all add up It is worth mentioning in this regard that considering again the Federal Perkins Loan, which allows you to pay back the entire amount with interest in 10 years, it will take away 1 2 years of your starting salary but spread over a 10-year term. More often than not the monthly payment would not be over $430 for the whole term, while your salary keeps going up. The question now arises: How Can You Plan Your College Education Loan Well, it is pivotal that you answer the question how can you plan for the loan education In an ideal scenario before you decide on a loan amount, you need to assess your different options: 1. Grants and Scholarships: Point to be noted in this regard is that grants and scholarships are referred to as free money, as they are not expected to be repaid. Furthermore it is worthwhile remembering that they fund education completely depending on certain criteria. In that scenario, you would hardly opt for loan if you have a choice. 2. Work-Study Programs: On- or-off-campus there is no hiding the fact that federal programs let students work part-time to offset their expenses. As a matter of fact depending on your savings, your loan amount can be reduced up to 50%. 3. Tuition Payment Plans: If experts are to be believed spreading out of tuition and fees eases the burden of a one-time payment for families who have discretionary income. 4. Home Equity Loans: More often than not this can possibly eliminate the necessity to take out a student loan. 5. Funding through Assets: In addition through the sale of stocks and/or 401 (k) plans, families cab fund their childrens education in order that they reduce the student loan component. According to experts with planned self-financing, you can strengthen your position to fund your higher education and reduce your student loan debt. On the other hand by utilizing student loans to either partly or completely fund your education, you will ensure yourself a lifetime of income long after the loan is repaid. Theoretically speaking loan education are meant for people whose income is not high enough to attend school. As a matter of fact with high education costs high and the availability of education loans, many people are opting for these loans. In an ideal scenario educational loans are of many kinds: according to the sponsor (federal or private), according to the beneficiary (undergraduate, continuing education, insurance loans, parent loans, payment loans), according to the course: law school, medical school, dental school, MBA, general graduate, or post graduate. Besides all this, there are also career loans for people who are pursuing graduate or postgraduate education on a part to full-time basis.
At the present juncture, getting an educational loan has become very easy. Believe it or not there are online applications as well as telephone applications. Whats more the requirements are often simple-- social security number, date of birth, employers name, phone number, years of employment, gross annual income (adjusted gross income for self employed individuals) and monthly rent or mortgage payment. Furthermore it is worthwhile remembering that there are many loan options to choose from. In addition sundry are the repayment options. More often than not they include standard repayment, graduate repayment, income-sensitive repayment, consolidation, and pre-payment. There is no denying that loans from the government have lower interest rates. In simple terms these include the popular Stafford loans. According to experts Stafford loans are of two kinds: subsidized and unsubsidized. Point to be noted in this regard is that these loans are insured by the government. As a matter of fact the government pays the interest for subsidized loans while the recipient is in school at least half-time. In addition these are for people who have low financial status. It is worthwhile remembering that the rate of interest for the federal Stafford loan is 4.70% during in-school period and 5.30% during the repayment period. Whats more there is also the parent loan for undergraduate students (PLUS) that allows parents to borrow any amount up to the cost of education. Other Articles |
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