Are Student Loans Becoming Necessary Evils?

When it comes to getting a college education most people can agree that the costs can be staggering at best. Even the least expensive colleges in the nation can add up over a four or five year period of time creating crippling debt for those who do not qualify for some of the better grant programs of substantial scholarships.

The problem lies in the fact that the parents of most traditional college students make too much money to qualify for the free financial aid that is needs based and very few qualify for the limited number of scholarships that are available to students based on merit. Even among those that qualify competition and fierce and there are no guarantees. Enter the student loan. There are all kinds of student loans and unfortunately with rising costs associated with college attendence and the growing necessity of a college degree for success in this country it is becoming more and more difficult to pay the price that is associated with higher education.

There are three types of loans that are commonly found for college students. They include federal student loans, federal plus loans, and private student loans. Each type of loan has advantages and disadvantages that are unique to that particular loan. Below I will give a little information about each of the loan types and whom they may benefit.

Student loans. There are three different types of student loans: subsidized, unsubsidized, and Perkins loans. Perkins loans are only available to students who display exceptional financial need. These loans are available at a 5% interest rate and are available to both graduate and undergraduate students. Perkins loans are extended through the university you attend and will be repaid to the university unlike the other types of student loans, which are repaid to the lending agency.

Subsidized student loans are loans in which the interest is deferred until graduation or you cease to be a qualifying student.  What this means is that while you are responsible for repaying the loan upon graduation the interest on these loans does not begin to accrue until your begin repayment 6 months after graduation or your cease to be at least a half time student of the university. You must qualify based on your income in order to receive a subsidized student loan. While the needs requirements for these loans isn't as grave as those required in order to receive a Perkins loan you must still qualify.

Unsubsidized student loans do not require qualification on a needs basis. You must be a student and enrolled at least half time in order to receive an unsubsidized student loan. The good news however for those who do not qualify based on needs for other student loan options is that this type of loan is available to all qualifying students regardless of need. The interest on these loans however begins to accrue immediately, which means they can really add up over time.

PLUS loans are loans that are taken out by the parents of students who need the funds in order to cover educational expenses. The maximum amount that can be borrowed is the cost of attendence minus any financial aid awards the student has already received. The repayment on these loans begins 60 days after the loan is dispersed and the repayment period can be up to 10 years.

In order to cover the costs involved in education that go above and beyond what the government recognizes as acceptable college related expenses you can opt to go the route of private student loans rather then relying solely upon federal financial aid for your student loan source. These loans require that you qualify in order to receive them based on your credit rather than your need and must be used for educational purposes only. With these particular loans you really need to make sure you read all the fine print as different companies offer different conditions and different perks. You should really take the time and compare prices and options before taking out a private student loan and this should be done only as a last resort.

Advantages of Universities

A degree from a university means many thing to many different people. Only you can define the importance of a degree such as this to you and only you can determine whether or not now is the time for you to pursue a university degree. If you are unsure about how advantageous a university degree could be to your life let's look at some of the advantages to a university education in relationship to a community college education.

Money. The first obvious advantage of a university education would be in future earning potential. A four-year degree trumps a two-year degree almost every time. There would have to be exceptional circumstances for someone with a two-year degree to earn more over the course of a lifetime than someone with a four-year degree in the same exact field. While a degree does not guarantee employability, it does improve the odds as well as the income potential that is associated with the field you are entering into. If you have a two-year degree the decision to continue your educational pursuits can be a tough one but it is well worth the effort in the end.

Housing. This is another distinct advantage that universities offer over community colleges. In fact, many universities are now offering housing opportunities to students with families in addition to those students who have no families. Colleges and universities are offering all kinds of value when it comes to housing and meal plans. A great deal of the college experience is missed when you do not live on campus. For this particular reason students wishing to enjoy the experience that dorm life provides often consider universities over community colleges.

Diversity. This is another key component that is often missing at the community college level. International students find no real price breaks between universities and community colleges so they tend to opt for the housing and cultural atmosphere that universities present rather than going with the limiting educational, residential, and cultural experience offered by many community colleges. You will find students of different races, religions, cultures, and nations on the university level-far more than will typically be seen in a community college unless you are attending community college in a very culturally diverse city such as New York.

Culture. This is something that is often lacking on the community college level, as they are largely commuter campuses. You will not see quite the opportunity to experience art, music, the theater, and other wonderful experiences that universities pride themselves in offering to their students. There is nothing quite like the cultural offerings of most large universities and if you get the opportunity I hope you will take the time to stop and experience some of the wonderful things that being in a university community present you with an opportunity to experience.

Research opportunities. On a university level you will have the opportunity to participate in research projects with certain professors if your prove yourself worthy and express an interest. This is something that isn't as likely on the community college level as most professors in a community college are dedicated to teaching rather than research. You will find that the experience of working on a large-scale research project is unlike anything you are likely to experience again if you ever get the chance.

Confidence. There is nothing quite like a college degree from a university to help you become a more confident person both personally and professionally. This is something that really can't be achieved on the community college level but can only be experienced by getting a degree from a university. If you lack confidence when dealing with others or in your career, I hope that you will find that your university education is just the thing to help you feel more confidence on all levels of your life.

These are just a small sampling of the many benefits of attending a university over a community college education. I hope you will carefully consider these when making your decision about which is best for your personal education needs.

A Community College Education is a Good Start

Many people search and search for the University they will attend upon graduation from high school. Eager students look forward to their time at university while parents wring their hands hoping that their children choose to attend a university that is not only close to home but also within their budget limitations. Another worry that parents have when their children decide to attend college is whether or not that university they attend will have the specialized and individualized services that their children were accustomed to receiving in high school. Face it; larger universities tend to be rather impersonal when it comes to the education of their students.

One answer to all those worries and more is to transition your students from high school to a two-year college rather than throwing them to the university wolves so to speak. Many people find that two-year colleges can in fact provide superior educations to four-year universities for those first two years or foundation college level courses. You will not get the specialized or specific instruction in a two year college that is available to upper level students on a university level but most students find the first two years of their college educations focused on getting the requirement and pre-requisite courses rather than the specialized courses in their intended field of study.

Many people also find that those first two years at a community college-transitioning from a small pond to a larger lake-are much easier to handle than going straight from high school to a university-out of the pond and into the ocean. Universities often have lower level classes as auditorium classes. These classes offer little individual instruction and are often sink or swim sorts of classes. Those students who have special learning needs are often lost in the shuffle when entering a university. Community colleges offer smaller classes and ample opportunities for tutoring as well as classes on how to learn to study.

Two-year colleges are also much easier on the budget than most universities. Most people find that community college does not place nearly the financial burdens on families that universities place. Add to that the fact that most community colleges offer very flexible class scheduling and even some courses online and you will find that there are many reasons to consider community college that go well beyond mere budgeting requirements.

Another benefit to students who wish to enter the work force sooner rather than later is that you can actually get a degree or certification in certain programs from a two-year college. This means that you can actually graduate and begin earning much sooner than if you were to attend a four-year college in search of a degree. If you aren't sure you want to invest the next four or five years of your life in pursuit of a degree or you simply aren't ready to commit yourself to one line of work for the rest of your life it is a good idea to spend two years in a community college rather than making the leap straight into a university setting.

If you are considering whether or not a community college or two year education is the best course of action for your specific needs, I really recommend creating a list of pros and cons of each and balancing your budget to see where your needs are most likely to be fully met. Remember you can always transfer to a university once you've completed your two-year college education or at any time during that education as long as you meet the universities admission requirements. Good luck and remember that your college education is one of the largest indicators of your future earning potential so take it seriously.