Paying for College: Getting a College Loan

Paying for College: Getting a College Loan

College is expensive. If you are looking to attend a college or university, then you may also need to look into your college loan options. A college loan can give you the money you need to pay your tuition, as well as your room and board so you can concentrate on school. College loans often do not have to be paid back until after you graduate, so you can hold off on paying for your education until your education starts paying off with a great job.

What types of college loans are available?

Stafford Loans- Stafford loans are loans that are usually given out by agencies, which work along with the federal government in order to make going to college a possibility for everyone who wants to. Stafford loans are taken out in the name of the person attending school. Stafford Loans will allow dependent undergraduate students to borrow $2,625 their freshman year, $3,500 their sophomore year and $5,500 each year thereafter with their loan amounts subsidized. Independent students (those who can not be claimed as a dependent on anyone's taxes) can borrow on an unsubsidized basis an additional $4,000 their freshman and sophomore years and an additional $5,000 every year after that. Graduate students can borrow up to $18,500 per year, however only $8,500 of that can be subsidized.

PLUS Loans- PLUS loans are given out in conjunction with the federal government, and are taken out by the parents of children who are attending a college or university. A PLUS loan will allow a parent to borrow as much money as they need to cover their child's entire education.

Private Loans- There are hundreds of private agencies that are willing to give out college loans. Some places can offer students loans that can supplement college loans they have already been awarded so they can pay for their entire education.

How do I apply for a college loan?