Bank Student Loans

bank loansA college education has never been more important, but unfortunately, it has also never been more expensive. College costs have been steadily rising over the years, and are continuing to do so at an alarming rate. Price tags from anywhere between $10,000 to $60,000 per year can be huge barriers to obtaining an education for prospective college students. Few families are in a position to cover the total cost, so student loans are an important part of any financial aid packages. Bank lending options, are one way that parents and students can choose to help pay for higher education.

Sources

It is very common for students who are receiving financial aid to receive a portion of their financial aid in the form of federal student loans. These types of loans are from the federal government; they include subsidized Stafford, unsubsidized Stafford, Perkins, parents PLUS, and GradPLUS. If these federal student loans, in addition to any other aid received, do not fully cover the cost of attending college, then students can receive financial aid from external sources. Banks, credit unions, and private financial institutions like Sallie Mae offer various types of student lending options.

What you should know

When you apply for student aid from banks, you will need to provide financial information to the bank: tax  returns, income, assets, liabilities, etc. Another key requirement for getting a loan is to have a strong credit score; however, bank student loans require the student to have a cosigner. This cosigner generally should have a good credit score as well because that helps with the chances of approval. When applying for bank student loans you are advised to do your homework, and research all the options to figure out which ones suit you best.

 

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