The cost of education has risen sharply over the last several years. Tuition, books, even housing expenses for students continue to rise with no end in sight. Meanwhile, Federal grant money for students has not kept up with these escalating costs making it necessary for students who wish for a higher education to get a student loan in order to fulfill their dreams of a college education.
Traditionally, getting a low interest college loan has been extremely easy but, now even these loans are becoming few and far between. However, with determination and a lot of hard work there are still some low interest student loans to be had.
Federal Student Loans
The first place to start when looking for low interest student loans is the Federal government. There are two Federal Student Loan programs worth considering.
The Perkins Federal Loan
The Perkins Federal loan is based on a student’s actual financial need. Students who are considered to have exceptional financial need are those students who have extremely low income that qualify for the Pell grant are most likely to qualify for the Perkins loan as well. One of the things that makes this loan a great option for students is that the interest is around 5%, and the loan is subsidized meaning that the government itself pays all your interest payments as long as you are enrolled in school at least ½ time.
This loan also gives you time after graduation to find a job before you have to start paying back the loan as you have 9 months after graduation before your loan payments start.
Stafford Student Loan
Another Federally based student loan you may consider is the Stafford Student loan. Like the Perkins student loan this loan is based on need rather than credit history. However, unlike the Perkins this loan may or may not be subsidized and the interest rate is 8%. If your loan is subsidized then you will pay no interest until after graduation but, if it is an unsubsidized loan you will be expected to pay the interest on the loan even while attending college. Other requirements for this loan is that you be at least ½ student and that you have not defaulted on any loan in the past.
Low Interest Student Loans For Nursing and Engineering Students
There are other low interest student loans available for Engineering and Nursing students. Some of these loans are even forgiven if the student works in certain poverty stricken areas after graduation.
While there are not a lot of these loans available they are worth looking into if you are planning on becoming a nurse or engineer.
Private And Personal Loans
Private and personal loans for students are credit based loans meaning that you have to either have good credit or a co signer to get your loan. While some private loans begin with low interest rates the rates can be raised. More often than not parents of students rather than the student themselves get the private loans to help pay for Child’s education.
Personal loans are geared more for the students and may have some of the features of Federal loans such as deferred payments until after graduation. However, these loans are not subsidized and the interest keeps incurring and will have to be paid back after graduation.
While low interest student loans are definitely an option for students whose families cannot afford the high cost of today’s education, and often fill the gap between student grants that are becoming even more difficult to get, they are not the only way to be able to get higher education. Some students and their parents are actively searching out colleges where tuition may be free. Although these colleges are few and far between and the competition to get into one can be tough. If you are a good student this is an option worth looking into.
While some of these colleges have some unusual requirements for getting your free education, such as taking part in mandatory student activities of working on the colleges dairy farm, they can offer the right students a free education without the worry of a debt, low interest or otherwise hanging over their heads upon graduation.
There are many options for students who want to get a degree and low interest student loans are just one of them.
Mail this post