Parenthood is full of hopes and ambitions for children, but maybe the most important one is to ensure that they receive a high-quality education so that they can achieve their full potential. The world we live in now is so competitive that the idea of “survival of the fittest” is all but a reality.
Many parents’ biggest nightmare is to find the additional finances necessary to pay for their children’s education, especially as the children become older, while also keeping the home fires burning. Providing a good education for one’s children is both a dream and a nightmare for many parents.
Parents have an uphill battle if they want to offer even one of their children a respectable college education because it would take a large chunk out of the average parent’s take-home salary. Parents may have the harrowing experience of paying for only the first year or perhaps the first semester of one child’s education after saving for years! When a child decides to continue their education and pursue an advanced degree or diploma, the financial burden on the parents could be considerable for as long as they are in school and in many cases even longer.
Fortunately, the issue faced by parents and kids does not end there. There are several low-interest student loan packages available from the federal government, as well as alternatives for future deferments if necessary, because the federal government has decided to take responsibility for this precarious situation. Like the federal government, many commercial lenders have followed following and are now offering comparable products, albeit at slightly higher interest rates.
Perkins, Stafford, and PLUS loans are three major types of federal loans that offer a wide range of financial aid options for students and parents in a variety of conditions and circumstances. These loan programmes do a lot to ease the financial strain of going to school. There is no credit check required to qualify for most of these low-interest federal loans, except in the case of PLUS Loans which are actually issued to parents of dependent undergraduate children and carry a slightly higher rate of interest than in the case of Stafford or Perkins loans, which are issued to undergraduate students.
When a student takes up a Subsidized Stafford Loan, the government covers the interest on the loan until the student completes their education. This is a distinguishing feature from an Unsubsidized Stafford Loan. Loans are limited and do not cover the costs of higher education, such as tuition and books and computers and accommodation.
Because federal student loans do not cover all of a student’s educational expenses, many students must turn to Private Loans (which have a higher interest rate) to make up the difference. To get a private loan, you must also have a strong credit score. To secure a loan if you don’t qualify on your own, you can get a cosigner who has a solid credit rating to back you up.
The amount you can borrow from a private lender is not normally limited, but your credit score will determine how much you can borrow, either alone or with a cosigner. If you are considering a private loan, it is wise to look into several reputable lenders and compare their terms and rates to see which one is the most suitable for your needs. This way, you can choose which lender provides the greatest answer for your unique circumstance.