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Student loans are a worthy
investment in your future.
With the cost of college tuition rising, it is likely that even if you receive scholarships or grants, you may still need to borrow at least some money to cover your costs. Research has shown that individuals with a bachelor’s degree earn 75 percent more than those with only a high school education. Those with graduate or professional degrees may earn even more. It is a worthy investment in your future.
Keep in mind that what you borrow must be paid back. Defaulting on a student loan will affect your credit history and your ability to make major credit purchases – not to mention the burden of additional collection costs for re-establishing payment on a defaulted loan.
Generally, Stafford and PLUS Loans must be paid off within 10 years. Make an estimate of what resources you will have available to repay your loans and do not borrow more than you can afford to pay back.
Direct Loans
Direct Loans are low-interest loans for students and parents to help pay for the cost of your education after high school. The lender is the U.S. Department of Education (the Department) rather than a bank or other financial institution.
With Direct Loans, you borrow directly from the federal government and have a single contact, the Direct Loan Servicing Center, for everything related to the repayment of your loans, even if you receive Direct Loans at different schools. You have online access to your Direct Loan account information 24 hours a day, seven days a week www.dl.ed.gov. You can choose from several repayment plans that are designed to meet your needs and you can switch repayment plans if your needs change.
Other Loan Types
Other types of loans include:
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