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College tuition costs are spiraling

So, our children want to fly away from the nest and continue their academic life at the university. But with costs rising, can we afford it? Will they have to take part-time jobs to stay afloat or can we supplement their financial needs with college loans?

These are just some of the questions concerned parents and aspiring students are asking today. No wonder when you look at the facts: a 51% increase in tuition and tuition costs for public four-year universities and a 36% increase for private four-year universities in the last decade alone. This, along with disproportionate income increases for families likely to have college-age children, means that parents or students themselves are increasingly turning to direct loans or private college loans for help.

Why do parents and students need extra help?

All parents and families are aware of what their Expected Financial Contribution (EFC) will be to their child’s higher education when they apply for a place. This is calculated minus any government grants and federally backed college loans that will be awarded to the student. Every family has numerous financial commitments, and the extra support for your child during college may be too much to bear if she doesn’t have enough savings or disposable income. But not all is lost! There are other sources of financial support available.

How can the deficit be covered?

Additional financial support comes in all shapes and sizes. They typically take the form of unsubsidized federal student loans, state-sponsored loans, and private-sector college loans. It is the latter that has experienced the most significant growth over ten years (an increase of 745%) and accounts for a whopping $10.5 billion of aid used to finance college education.

The available private college loans can be divided into student loans or parent loans:

student loans

o Private college loans from banks and other funding sources.

Parent Loans

o Private education loans from banks and other financiers.

o Home equity loans to withdraw equity from your property. These funds can be used to pay university fees.

Is it all worth it?

It’s all too easy for parents and students to resist the idea of ​​getting college loans to continue their education. The cash needed to see them through up to four years of study may seem impossible to come by, but they just need to realize the benefits this will bring to their child and to America. People with a college education earn more than those who finish high school, they also participate more in society, and their children will also achieve higher levels of education.

The investment is worth it.

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