Selecting Student Loans for College
July 13 2006 - 6:14AM
PR Newswire (US)
RESTON, Va., July 13 /PRNewswire/ -- A college education is an
invaluable investment in one's future. And, while media reports
inevitably tout the increasing cost of going to college, they often
fail to mention that financial aid also has increased. When it
comes to getting a loan for college, in fact, roughly two-thirds of
students look to low-cost student loans. (Logo:
http://www.newscom.com/cgi-bin/prnh/20030617/SLMLOGO-a ) "Students
should first consult with their financial aid office for
recommendations on student loan options and lenders," says Martha
Holler, a spokesperson for Sallie Mae, the nation's leading
provider of education funding. "Most offer a list of lenders that
they recommend to their students as offering excellent rates and
terms and providing excellent customer service." Federal student
loans, like those offered by Sallie Mae, are the most common way
for students and families to finance a college education. Federal
student loans are available on both a financial need and non-need
basis. And while these loans typically have borrowing limits, they
offer the most attractive terms; lower interest rates, subsidized
interest in certain cases; the ability to postpone making payments;
longer repayment terms; and less stringent credit requirements.
Some lenders also offer additional borrower benefits such as loan
balance reductions for paying on time and reduced interest rates
for signing up for automatic debit and making payments
electronically. PLUS Loans are another college-funding option. A
PLUS Loan is a low- interest federally funded loan for
credit-worthy parents of undergraduate, dependent students as well
as for graduate and professional students. The PLUS Loan will cover
the entire cost of education, including books and living expenses.
For students and families who find that federal programs are not
enough to cover the cost of college, private loans can help.
Private loans are designed to supplement federal loan programs and
are available from schools, banks, and education loan
organizations. The terms of these loans vary based on the lender
and the credit history of the borrower or co-borrower. Sallie Mae's
"How to Pay for College: A Practical Guide for Families" offers
additional insight on selecting a student loan. Written in
collaboration with financial aid administrators, the book devotes
several chapters on student loan options, as well as tips on
successful repayment. "Loans should be taken out after a student
has fully exhausted all other options, such as grants and
scholarships, that do not need to be repaid," Holler adds. "The
bottom line: There are many low-cost funding options for students
and their parents to cover the cost of college, making higher
education within reach of anyone who desires it."
http://www.newscom.com/cgi-bin/prnh/20030617/SLMLOGO-a
http://photoarchive.ap.org/ DATASOURCE: Sallie Mae CONTACT: Erin
Korsvall of Sallie Mae, +1-703-984-5136 Web site:
http://www.salliemae.com/ Company News On-Call:
http://www.prnewswire.com/comp/827187.html
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