No Monthly Payments until Graduation! Focus on Federal Education Loans
{ Posted on 3:30 AM
by SHANI
}
If you will be attending a United States school and require some extra money to pay for your tuition, your books, your living expenses, and for other school-related costs, federal education loans can be one of the most cost-effective ways for you to pay for your degree program. A government education loan is offered by the government in order to support education in the country. Federal education grants are offered to students at all levels of study and to students in various areas of study. Federal grants for education are simple to apply for but can dramatically improve your ability to pay for college or university.
What are Federal Education Loans?
Federal student loans are loans which are offered by the federal government to students. These loans have to be paid back with interest after student graduates. However, they have lower interest rates than most private loans as well as terms that are very convenient for students. For example, subsidized need-based federal student loans accrue no interest while the student is at school. All federal student loans only have to be repaid after students leave school. This means that until a student graduates or leaves their program, no monthly payments are required. This allows a student to focus on studies rather than on their debt.Statistics about Federal Education Loans
Many organizations gather statistics about federal student loans. Did you know?- In 2000, the average loan for undergraduate students enrolled at four-year public colleges was $5,300, according to the National Center for Education Statistics. By the time the average student graduates, they have more than $10 000 in debts, and more than half of all student debts are from the federal government.
- According to the National Center for Education Statistics, about 50% of students take out student loans in order to pay for college or university. Of these, the vast majority applies for - and gets - federal government money for their education. In fact, federal government student loans are considered to be the top choice for students at every level of study.
- The U.S. Census Bureau reports that workers with at a least bachelor's degree have incomes that are, on average, over 80% greater those who only have a high school diploma. This means that over the course of a worker's life, a worker with a college degree will make more than $1 million more than the average worker. This certainly seems to make a small federal education loan well worth it.
