When it comes to student loans, many students are of the opinion that they are necessary to help meet college costs, but this is highly debatable among many financial aid counselors as there are a variety of ways for students to meet college costs without going into debt. However, at the present time, there are a few options available to help students here in August better plan for the fall semester of 2011 in terms of scholarship and grant opportunities, so there are numerous students who are either beginning or returning to college in need of a loan as a way to pay their tuition for the coming school semester.
Yet, we have seen debates arise as of late which center around whether students should borrow specific types of loans only or whether a mixture of both federal and private loans can be beneficial. Also, there are some individuals who have advised students to borrow the maximum amount they can during their first semester at college to simply get an idea of how much college will cost and if loans are needed in subsequent semesters they will have a better notion of how much they need to make ends meet. However, there are also financial advisers who are strictly against students borrowing the maximum amount that may be offered to them through private or federal loans, as this is simply going to add to the overall debt a student must repay after graduation despite the fact that it may make the financial life of some students easier at the present time.
As of late though, there have been many college student advisers who point out that there are some simple steps that can be taken to explore a variety of options and how they will impact a student’s financial life, so that these students may make better financial decisions in terms of borrowing loans. In the most simple of terms, many advisers often counsel students to only borrow what they need and never borrow a total of student loan debt that is higher than what they expect to earn in their first year after college.
Also, many make the argument that federal student loans should be the only option that a student uses due to the fact that private loans may come with adjustable rates, fewer hardship assistance options, and may not offer forgiveness plans if students meet certain qualifications. While there are some private student loan lenders who are looking to compete with federal loans by offering options like fixed rate college loans, students do need to always strive to keep their borrowing at a minimum and, in cases where a student may enter into a specific career after graduation, keeping their borrowing strictly to federal student loans may offer these forgiveness options after a set number of repayments have been made.
Currently there are students who are without any alternatives in terms of how they will pay for their college tuition costs in the coming semester, and despite the fact that a student’s borrowing decision will be personal and will require that a student make an informed and responsible choice, keeping the amount that a student borrows low, sticking with options like federal loans that may offer more repayment options, and working hard to find free sources of financial assistance in the spring and fall semesters of 2011 can greatly reduce the burden that almost any student will carry if they borrow during their college career.