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Types Of Funding Available For Student Loans

George Sterling | Friday, October 5th, 2012

Paying tuition fees for college is not easy on parents or their children. There are a lot of issues associated with going to college for a child, especially when he or she doesn’t belong to a very wealthy family. The truth is, even the middle class in America is struggling to send their children to college, due to high cost of tuition fee and other college expenses.

However, parents and children should not give up hope because there are different kinds of student loan options available that you can choose from in order to pay your college tuition fee.

The two most common types of funding available for students include the Public Option and the Private Option. The public option is a publically funded loan that is not only affordable but also provides students with better repayment terms. The cost of the loan is also low as compared to other options. With the public option, students will be able to pay their loan payments on time and easily because the rate of interest is low and it is fixed.

There are several different entities that give out public loans. Students and parents should research their options well and then select a suitable lender.

When it comes to student loans and funding, there is also the private option. As compared to the public funding option, private loans are expensive. Private loans come with a higher rate of interest and students with bad credit histories might not get the loan. The only advantage of getting a private loan is that the repayments can fluctuate.

However, if you are struggling with money, getting student loan from a public lender is your best bet. There are other options available as well though, including financial aid given by private institutions and organizations to promote education. However, the problem with these options is that a lot of students are competing for the same prize (scholarship), and therefore, there is a lot of uncertainty involved.

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