Planning For Your Future Career
Some students are fortunate enough to pay for school through scholarships. Others may be financially capable of paying their tuition without any financial aid or loans. I did not fall into either of these categories, but a college education is still within reach through student loans.
There are a variety of programs that are available for students that are in need. There are Federal Stafford Loans, Federal Direct loans, and private loans. The type of loan that you obtain should be based on your need. There are so many options available, but most students do not take the time to access the information on the various types. It is best to be informed on the type of loan that you are obligated to before signing the terms of agreement.
Many banking institutions offer private student loans that can help students accomplish their goals in concerns to obtaining a college education. A major difference is that these loans have interest rates and fees that are determined by your credit rating. These loans are rarely primary loans. They are often a supplemental source of aid in the even that federal loans and grants are not enough. These loans are also different in the sense that they often have variable interest rates.
There are also federal loans available. These loans are typically the ones that most college students apply for. Within the area of federal loans you will find two categories: subsidized and unsubsidized. The subsidized loan is the one that I plan to use to aid in the pursuit of my college education.
The federal loans, in my opinion, are much better than the private loans simply because they usually have lower interest rates. This is something that is very important when you consider obtaining a loan. It may not make much difference while you're in school, but the payback will be much more on a private loan that may only be 2% higher than federal loan interest rates. It's the added cost over time that causes many students to default on their payments. I choose not to go down this road.
In addition to this, students also need to find out whether the loans are subsidized or unsubsidized. The federal government does not pay the interest on unsubsidized loans, but it does pay interest on subsidized loans. This is a great money saver because the interest can make the initial loan cost skyrocket over the course of a couple of years.
With a major in computer information systems I plan to pay back the loans over several years by paying the monthly amount due as well as an extra $100 to help pay down the principal down sooner. I believe that a job in the technology field will help me pay the amount owed in a relatively short amount of time.
I plan to start in the help desk support area, but I know after several years that I should be able to advance in this field and get a job as a network engineer for internet security. Once I advance in this area I will begin to make an additional $100 payment in addition to the extra $100. This will amount to an extra $200 per month that coincides with the required amount due. I believe that this will greatly help me pay down the total loan amount much faster.
I plan to live at home when I'm in school to save on room and board. This will minimize the amount of money that I will need to burrow for the loan that I apply for. I will also work to cover some of the other expenses that will be occurred during my college studies.
If my estimates are correct I should be able to finish the program in four years. I may extend this time by a semester or more with an internship. This will give me the experience that I need to fully utilize my talents in the areas of technology.
All the loan programs that are available will make it much easier for prospective students like me to attend college. There's no way that I could afford to attend college without a student loan, but I am well aware of the cost. I know that any delays will add interest to the total cost of my loan if I do not set up a payment plan after I am out of college. I am aware, however, of the grace period of several months after graduation before my first payment is due. This is very helpful because it will allow me to make the transition from college to the workforce without the added pressure of a monthly payment plan.
Every student has to make the choice to decide what loans will be the best choices in the long term. The cost of tuition has continued to increase over the last decade, and almost everyone appears to need some assistance. It's ironic because the sluggish economy has also lower interest rates on loans. Even with the increase in costs this would still be the best time to attend because the interest rates are lower.
It is my belief that the federal student loans will be sufficient in helping me finance my college career without the aid of any private loans. I also believe that my career will allow me to establish a good repayment plan with my future lender.