You have applied for all your scholarships and looked into all the student aid you can. Now it is time to look into bridging the gap with student loans. There are three major categories when it comes to education loans. They are:

Student loans

• Stafford – Fixed-rate, low interest loans available to undergraduate students attending accredited schools at least half time. The most common source of college loan funds.
• Perkins – A low interest loan for undergraduate and graduate students with “exceptional” financial need.

Parent loans

• Parent PLUS – A low interest student loan for parents of undergraduate, dependent students. Families can fund the entire cost of a child’s education (less other financial aid).
• Graduate PLUS – Federally sponsored loans for students attending graduate school. You may borrow up to the full cost of your education, less other financial aid received.

Private student loans – After you have pursued free money and federal loans, these may be available to cover the rest of your education costs.

There is a fourth type which is a consolidation loan this allows the borrower to lump all of their loans into the loan for simplified payment.

Federal student loans are the largest source of education loans. They have more favorable terms than private loans. The loans are guaranteed by the government and they set their interest rates low. Almost all students are eligible to receive federal student loan money. One of the biggest benefits is they have a grace period after school when no payments are due.

Very few students can afford to pay for college without some form of education financing. Almost two-thirds of 4-year undergraduate students graduate with some debt. The average student loan debt among graduating seniors is just over $19,000.

The Federal education loan programs offer lower interest rates and more flexible repayment plans than most regular consumer loans. In many cases, you can deduct some, if not all, of the student loan interest on your income tax return.

If your dream is to put yourself or your child(ren) through college. There are several ways you can do this. Hopefully the information I have provided over the last two weeks have helped you realize if there is a will, there most definitely is a way.