Are College Loans The New Second Mortgage?

: Chris Lee Law Firm

  Filed under: Loans

student loanWith the cost of tuition rising each year, many families are struggling to find a way to send their kid to college without ending up in loads of debt.  It isn’t uncommon for families to take out additional loans, or find financing for college expenses through alternative sources. When a family is already in significant debt, taking out an additional loan may put the family at risk of foreclosure or bankruptcy.

Before you sign that loan application for college expenses, consider these alternatives:

Federal and State Programs

There are many grant and scholarship programs that offer money to college students from all walks of life. In the past, only those who did not have sufficient income could qualify for grant money. These days there are many scholarship options for kids of certain ethnicities, those entering specific fields of study or research, single mothers and those with certain athletic or musical abilities. The best part about scholarship and grant programs is that the money does not have to be repaid, unless the student fails to stay enrolled or pass their courses.

Community Colleges

More students are transitioning from high school into a local community college before going off to a major University. Community colleges offer cheaper courses, flexible schedules and do not require minimum enrollment hours. Flexible schedules can allow for students attending community colleges to hold a part time job to help pay for school and living expenses. Since there is no minimum enrollment hours students can take one or two courses a semester, rather than a full load of 5 courses required by most Universities. It may take a little longer to obtain their degree, but having the opportunity to earn income to pay for their classes will prevent them from graduating with loads of student debt.

For more information about grant and scholarship programs:

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