Some students rely on scholarships, others on jobs, but the majority of college students use loans and financial aid. Sallie Mae's Erin Korsvall joined the Good Morning Show in order to give us some tips on financing today's college education.
Student loan interest rates have dropped to record lows and there are many last-minute options for those who need additional funding. Many families may be in need of funding beyond the Federal Stafford Loan program, which is the most common type of education loan program for undergraduate students.
While interest rates for these loans are at historically low levels 2.77-percent for borrowers in school freshmen students may borrow only up to $2,625.
Here are a few alternatives:
The PLUS Loan is a federal education loan that allows parents to borrow full cost of their child’s education, including, tuition, room and board, at an all-time low interest rate.
The Sallie Mae Signature Student Loan is based on the student or co-borrower’s credit history, and may have interest rates as low as Prime Rate plus zero-percent with zero fees.
The Tuition Answer Loan is a new option is for 2004 and allows credit worthy adult students and parents to borrow up to $30,000 per year to cover all education related expenses including books, supplies and living expenses without completing financial aid applications or forms.