US Student Loans

by Waller Jamison

What are Student Loans? Student loans are loans, provided by the government or private institution, which have low interest rates and are offered to cover college expenses.

Students can take out loans themselves and if they are still dependent on their parents, specialized parent loans are also available.

The majority of students will need to take out a loan in order to be able to fund their college education. On average, students in the US borrow around $18,000 and considerably more on certain courses.

In addition, around one in ten parents also take out a loan to help their children through college.

Graduate loans are also on the increase and most graduate students borrow considerably more, with graduate loans often reaching figures between $30,000 and $100,000. So a college education is not cheap and student loans are big business. It is advisable to do plenty of research before deciding which loans are right for you or your children. 

Some Important Considerations when Taking Out a Student Loan

Choosing the right course is critical - that is, one you enjoy, will do well at and which will help you get a job when you graduate. Although you can't guarantee that every decision you make will be ideal, you can increase the likelihood of success by carefully considering your options.

It's bad enough to hate your course, flunk your exams or drop out without having a mountain of debt to worry about as well. Is your course worth getting into debt for? In most cases, the answer will be yes.

Are you getting the best low interest rates student loans available? Some companies offer discounts and other incentives. So make sure you find a loan option which works for you.

What are the loan repayment options? You need to make sure these are as flexible as possible, just in case any unforeseen problems crop up. Are there opportunities for loan forgiveness if you find that you can't get a job?