About Free Student Loans
Attending college or university is important for your future. Paying for your education can be one of the biggest barriers you encounter in the process. There are loan options to help you pay for school that vary in structure, requirements and payment plans. Unless you attend a community college, you will likely be considering this option to pay for tuition.
What are student loans? Student loans are available to students in two forms: government funded and private. Loans from the government are determined by the cost of tuition at your chosen school and your financial needs. Private loans are funded by financial institutions like banks and require you to have good credit or a cosigner to qualify for them.
How do I know what loans are available to me? Financial aid packages are determined by the college or university chosen by the student based on individual need. This need will be determined after the student fills out the Free Application for Federal Student Aid or FAFSA. Schools prepare a financial aid package for students that may include a combination of grants, that do not need to be repaid, and loans that must be repaid.
Will I need to take out a loan? Unless the tuition at your chosen school is low, you will likely look at the possibility of taking out a loan to pay for school. It is very rare that grants alone pay for college tuitions these days.
Are there “free” loans out there? By definition there is no such thing as a “free” loan. Loans must be repaid. There are different types of loans, however, that vary in the interest rate charged and repayment options for borrowers. Loans from the Federal government typically offer the lowest interest rates and the most flexible repayment plans. Private loans typically have more stringent repayment schedules and higher interest rates. Unless you borrow money from an individual or an organization that clearly states there is no interest on your loan, you can expect to pay interest. Loans without interest are close to impossible to find, but do exist. Your best option for finding private loans with no interest or low interest is to search for organizations that look to help people with potential, but low incomes. They will likely charge some interest to keep the program running, as there are operating expenses that must be covered to keep it running.
What are other options I can find to pay for school? You can always search for scholarships. They do not need to be repaid. There is typically a large demand for them, so you need to position yourself as an above-average student to be considered. The fact is that you should expect to invest in your education if you plan to reap the rewards in the future. If you choose the right program you can expect to be more employable and make more money for the rest of your life.