Students Financial Plans – Fund Your Education Smartly

| November 15, 2013
English: Day 3 of the protest Occupy Wall Stre...

English: Day 3 of the protest Occupy Wall Street in Manhattan’s Zuccotti Park. (Photo credit: Wikipedia)

Records of student debts have surpassed all kinds of other credits. Student debts are increasing by leaps and bounds. According to US data, students’ debt has crossed $1 trillion level. Therefore, time has come when students should plan for making proper use of their finances to meet their college fees because qualifying for government loans is really tough.

Now, before making plans for spending their funds, it is essential to know about the diverse kinds of loans. Eligibility criteria and repayment mode of one loan type are different from the other. Hence, understanding the distinctive features of every loan structure is important.

Types of Student Loans for Better Future


Loans are provided to students by US Department of Education. This is the federal direct loans which are offered at the most affordable rate. Compared to the other types of students’ loan, the repayment structure of this loan is also flexible. Students are also liable to go for subsidized loans the interest of which is paid by the government during the grace period of the student. However, if students apply for unsubsidized loans, they will not get this provision.


Interest rate for these loans is very high because government is not responsible in paying these loans. Moreover, there is no fixed interest rate for private loans. Thus, lenders have the full freedom of increasing the rate when he wishes to.


This type of student loan  was provided to students previously under Federal Family Educational Loan program. In this loan type, the government used to give a backup for the loans acquired by students from some private lenders. Only few years back, government totally stopped giving this backup support to students.

Students Finance Needs to Planned Intelligently

Now, what type of loan a student will choose completely  depends on his financial condition. No matter what kinds of loan they opt for, the students must make plans for repaying them much beforehand. But how can a student get the best suited loan for him? Here are some guidelines…

How to acquire the most perfect student loan?

While arranging finance for college, students must keep these things in mind –

College Plan:  Pick the colleges for which a student wants to apply because educational institutes have significant contribution in shaping up the future of a student. What kinds of plans the college is offering will help a student to decide upon his loan amount.

Career Plan: It is important that a student has clear notion of his career objective because his salary will be determined depending on his career. Loans are offered according to their career pursue so that the loan amount can be comfortable repaid by the student.

Loan Affordability: Will a student be able to repay the loan? To know this, students must calculate the amount of monthly payment he has to afford. The total loan amount will never exceed the first annual salary of the student.   

Thus, student finance needs to be planned after understanding different aspects involved in it. Not all loans are suitable for all students. So, choice has to be made wisely.

Author’s Bio: Alisa Martin is a business professional who writes articles on finances and businesses. She lets her readers know about some new concepts like Second Passport  in the finance world.


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Category: Education, Financial Planning, Student Loans

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