School Loans

The Pros and Cons of Student Loans

Student loans are given to a student in order to pay for their education. It can be a four-year university or nursing school there are student loans to pay for every type of higher education.

Pros and Cons of Stafford and Plus School Loans

There are various forms of student loans but the most common are the Stafford student loan and the Plus school loans. The Stafford student loans are generally for four-year college students looking for aid in their schooling. A Plus student loan is for graduate studies and other forms of higher education such as nursing school and medical school. One of the advantages of a Stafford student loan is there are no credit checks. This is an advantage because many times the student is young and have not established their credit. Because the federal government guarantees the money in the loans a credit report is not used as a qualification for a loan. Plus student loans do have credit checks though as these types of loans are for graduate students. So if you are looking into going to nursing school a Plus loan is the one you would look into. Student loans also have very low interest rates and flexible repayment plans. Generally school loans do not have to be paid until 180 days after the student graduates college or leaves school. The federal government can give plans for the repayment of loans that are very favorable. The federal government will look at that student’s budget and then set up terms for repayment.

Cons of Student Loans

One of the main disadvantages of school loans is that the limit amount of the loan is low. Because higher education is very expensive many students have more than one loan for school. In the Stafford and Plus student loans federal filings are a requirement to get the student loan. For getting a Plus type student loan they first have to have had a Stafford student loan. Another disadvantage, and can be a bit if a hassle, is that the student has to apply for the loan every year they are in school regardless if it a four-year college or a two-year nursing school program.

School loans are readily available for many different types of students. You just have to know they type of loan you want before going out and applying for it. For example, you will not be looking for a Stafford loan if you are going to nursing school. To be best prepared when looking for a loan, know what financing you need before applying for the loan. Many loan options for students, especially offered by the federal government, have lenient repayment options. Talk to a loan expert as they can help you in finding a loan to fit your individual needs. They can also help if you need more than one loan, as consolidation of student loans is an option that many students take when taking out school loans.