College is expensive. So expensive, that most people can pay for it all out of pocket. If you don’t have a college fund all saved up, you have to work to save, apply for scholarships, and look for grants. In fact, your probably already doing this frantically.
Some people are lucky enough to be born into a rich family or have parents that were able to set aside money in a college fund. Others are super smart and able to land a full ride scholarship to the college of their choice.
The rest of us don’t have these luxuries, no matter how hard we try. We have to try to save by going to a state school or a community college first. We apply for every scholarship that we even just remotely qualify for, and we save every penny. After that, we have to get loans.
If you cringe at the thought of taking out a loan, don’t worry. It’s not as bad as it sounds. As long as you use it as a last resort and are careful with your money, taking out a loan for a college education will help you tremendously in the long run.
Government student loans are the first place you should look. They will always have the lowest interest rate compared to private loans, and especially compared to credit cards. The Stafford Loan should always be your first choice.
The Stafford Loan can be used for any 2 or 4 year college, university, or trade school. It must be used for tuition and you can borrow up to $4,000 each year. You can choose either a subsidized or unsubsidized loan.
If you are in great financial need, you can get the subsidized loan in which the government will pay the interest on the loan until six months after you graduate. If you don’t show great financial need, you can still get the unsubsidized loan in which the government won’t pay any interest.
The Stafford loan is the first place you should look if you are considering a loan. You will have to pay it back, so make you have have plans to repay when you graduate.
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