| So, our children want to fly away from the nest and further
their academic life in college. But with escalating costs, can
we afford it? Will they have to take part time jobs to stay
afloat or can we supplement their financial needs with college
loans? These are just some of the questions that concerned
parents and aspiring students are asking themselves nowadays.
It’s hardly surprising when you look at the facts - a 51%
increase in fee and tuition costs for public four year colleges
and a 36% rise for private four year colleges in the last decade
alone. This, coupled with the disproportionate income increases
for families likely to have college age children, means that
more and more often parents or students themselves are turning
to direct loans or private college loans for help.
Why do parents and students need extra help?
Every parent and family is made aware what their Expected
Financial Contribution (EFC) will be to their child’s further
education when they apply for a place. This is calculated minus
any government grants and federal supported college loans the
student will be granted. Every family has numerous financial
commitments and additional support for your child throughout
college could be all too much to bear if you don’t have enough
savings or disposable income. But all is not lost! There are
other sources of financial support available.
How can the shortfall be covered?
Additional financial support comes in all shapes and sizes.
They normally take the forms of unsubsidized federal student
loans, state sponsored loans and private sector college loans.
It is the latter that has experienced the most significant
growth over ten years (a 745% increase) and accounts for a
whopping $10.5 billion of aid used to finance college education.
The private college loans available can be split into student
loans or loans for the parent:
Student Loans
• Private college loans from banks and other funding sources.
Parent Loans
• Private education loans from banks and other funders.
• Home equity loans to draw down equity from your property.
These funds can be used to pay for college fees.
Is it all worth it?
Its all too easy for parents and students to balk at the idea
of taking out college loans to enable them to further their
education. The hard cash needed to see them through up to four
years of study may seem impossible to raise but they just need
to realize the benefits this will bring their child and America.
College educated individuals earn more than secondary school
leavers, they also participate in society more and their
children will attain higher levels of education too.
The investment is worth it.
Peter Siu is a successful freelance writer providing valuable
advice for consumers when applying online for credit cards,
student credit cards as well as other personal & mortgage loans.
You can visit his sites at
http://www.uscreditcenter.net and
http://www.ukcreditcentre.com - His numerous articles offer
moneysaving tips on a number of topics.
Article Source:
http://EzineArticles.com/?expert=Peter_Siu
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