Friday, April 11, 2008

Funds still flowing for student loans

The lock-up of the auction rate market has only impacted some student loans, a wide variety of government-backed and private-sector student loans are still available. One recent article outlines the Best Federal Loans for Graduate Students. Much of the content of the article is also applicable to undergraduates. Fixed rate federally backed student loans have many advantages over private loans. Eight key advantages are outlined in the article followed by a description of the best federal loan programs.

Anya Kamenetz outlines why There is No Student Credit Crunch. Despite several states having to cut back FFELP programs; there are still plenty of resources for low-cost federal student loans in the upcoming academic year.

It is best for students to focus on federally backed loans and stay away from private student loans with expensive variable interest rates and borrowing terms that make most people cringe.

Both of these articles are worthwhile reads for college students and their parents. Before applying for financial aid, it is important to have a sound understanding of the available programs.