Apart from buying an expensive car or a new house, a college education will probably be the most expensive and biggest investments you will ever make. This will prepare you to have a better career in the future.
These days, it is no secret that securing reliable funding sources for college students is quite difficult. After you have exhausted all government grant options and scholarships, where can you go to find the money that you need for your children’s or your college education? Well, this is exactly what we will cover in this article.
One viable option would be to look into the PLUS program (Parents Loans for Undergraduate Students). The program allows the parents to borrow a certain amount of money per child from the government, at lower interest rates. PLUS program loans are mostly based on the ability of parents to repay them, not on their current financial needs. In most cases, parents start to repay these loans immediately, or within 60 days, once the funds have been transferred.
Unsubsidized bank loans
Next up, you should consider raising college money via an unsubsidized bank loan. A large number of credit unions and banks are known to offer special loan programs to future students, with interest charges up to 2% below the current market norms. These loan programs commonly have financing schedules that are longer when compared to standard consumer-type loans. These are loans made to the parents, not the students. This is simply because parents have a longer credit and financial history, which the bank can safely rely on.
Loan plans and bank savings
Another method of raising college money involves using a loan plan and bank savings. This method is quite similar to the credit line. However, it is based on how much money you currently have in your savings account. Your bank will usually multiply that amount by a certain figure and let you borrow that multiplied amount so as to finance college tuition. However, keep in mind that, if you have already emptied your savings account to pay for college, you will not benefit from this method.
Last, but not the least, you should also pay attention to various financial programs sponsored by the colleges themselves. A good number of colleges, especially the private ones, are known to offer a wide variety of creative options. In general, a college of your or your child’s choosing will provide you with a loan, which you will pay back over a long period, in some cases even up to 30 years. One key disadvantage of this method is that you will probably pay more interest over such a long period. In most cases, once your child has graduated, a college will sell your loan to another institution, for example, a loan company or a bank.
Be persistent and patient
In the end, be persistent and never give up. Even if it may seem that you have exhausted all the available options, make sure to keep looking. There are always some old programs that you might have missed, as well as new ones that are regularly springing into existence. If nothing else, you can always rely on your college’s financial office and discuss with them any possible financing options.