Campus News Blog: Federal Loans are the Best Option for Student Loans

Posted by Gwen Sullivan

With the economy in slow recovery, college students across the board are trying to make ends meet.

According to The Princeton Review, SMU tuition alone costs an average of $31,200. Especially for families with more than one child, a 4-year education at a private university can break the bank.

One solution? Student loans.

For those who can barely get by paying for a college education, federal or private loans can make all the difference. But it is important to choose your student loan wisely! The last thing you want is to enter the ‘real world’ with a whole bunch of debt.

In Jonnelle Marte’s Wall Street Journal article ‘Don’t Ignore Federal Loans,’ she advises students and their families look into all federal loan options before settling on a private loan.

“Nearly two-thirds of undergraduate students who took out private loans in the 2007-08 school year could have taken out more generous federal loans, according to a study by the Project on Student Debt, a consumer group based in Berkeley, California.”

For students who have to work off their own loans after graduation, federal loans offer lower interest rates, more flexible payment plans and loan-forgiveness plans for graduates who have low incomes. Private loans also don’t always offer the same protection for borrows as federal loans do.

Good news! You don’t have to come from a low-income family to receive financial support. There are loans available for almost anyone.

For more information on student loan options, visit FinAid!