As more employers have raised their minimum qualifications in the recent months, earning a college degree is essential. Still, people eager to obtain a degree may be worried about the financial details of going to school, such as the ability to secure grants for college. Although there are several options for receiving financial aid, many students are wondering which type of loan they should apply for.
These individuals should realize that there are several opportunities for attaining student loans in order to pay for tuition. For example, federal grants such as Stafford loans are available to students at a fixed interest rate.
According to a study released by the Project on Student Debt, one in four private student loan borrowers opted not to borrow from the government.
“These data are troubling because private student loans are more like credit cards and have very little in common with federal student loans,” Lauren Asher, Acting President of the Institute for College Access & Success told the organization.
Individuals who are enrolled at a college or university may be happy to learn that the interest on government loans is decreasing. According to the Wall Street Journal, the current interest rate for Stafford loans is expected to drop 1 percent for the upcoming academic year. For the 2011-2012 year, these figures are projected to fall an additional 1 percent. That means students may accrue less interest after they graduate and be able to pay back what they borrow at a much faster rate.