Sunday, April 12, 2009

College Loan

College loans are an excellent way for people to fund their education when they can't pay for classes while attending. The great thing about these funds is that they don't start gaining interest until the student stops taking classes. This happens either when he graduates or drops out of school. Even though they are set up to help undergraduate students, an applicant should consider certain factors when applying. When a student fills out a FASFA form {Free Application for Federal Student Aid), the government officials will evaluate the information and suggest certain programs that the student qualifies for. Speaking with a financial adviser might be a student's best resource even when applying for FASFA funds. A financial adviser will be able to look at all the person's assets and opportunities for credit in a wider range than the professionals at FASFA. 

Other routes of college loans include borrowing money from trust funds, relatives, and even from a life insurance. All of these options, for getting a college loan, need to be discussed with a financial professional because of the individual nature of each option. There are also programs that allow students to work at the educational institution to pay off the indebtedness while the student attends classes. 

Every student needs to have a good handle on the financial hurdles that getting a degree entails, and how the debt will affect their future, after graduation. One important aspect for the student to research is the interest rate on college loans. Along with finding the lowest possible interest rate, the student must also find a program that gives him as many options for repayment and deferment as possible. The wise coed will consider the amount of debt that he will accrue throughout his undergraduate training and compare that to salaries in the career field of choice. Accruing tens of thousands in credit for a field that pays $30,000 per year does not make sense. This coed may opt to take the educational training over a longer period of time and reduce the amount of debt it would take to get his degree. A prudent person will explore all the options for college loans, talk with a financial adviser, and write a plan to manage his finances, even while he is still in training.

Taking out a college loan is a big decision, and should be undertaken only after prayerful consideration. Isaiah tells us, "They that wait upon the Lord shall renew their strength; they shall mount up with wings as eagles; they shall run, and not be weary; and they shall walk and not faint" (Isaiah 40:31). When the chore of getting through a long educational career pathway seems daunting, the believer has assurance that God will walk with him and strengthen him. With God's guidance, we can accomplish the goal of taking out a college loan, if that is what He sets before us.

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