State Loans for College Students: Understanding Your Benefits

Introduction

Today, when the innovation and revolutionary are starting to gain huge importance in education, it’s still necessary to know “standard” ways of how to pay for college. Student financial assistance consists of loans, grants, scholarships and work-study programs. Although grant and scholarship programs are very appealing for applicants due to the fact that they don’t have to be repaid, loans are also important. In fact, $66 billion dollars were awarded in the form of federal loans in 2009-2010.

State Loans and Their Benefits

State loan programs allow borrowers who meet eligibility requirements to receive low-cost loans funded by state agencies or alternative lenders. The main mission of state loans is to help students and their families with financing education by providing supplemental education assistance. What does it mean? Generally, borrowers should apply for the following options when they have exhausted all other traditional sources of aid like federal grants or work-study program.

The main benefit of loan programs available in states is that applicants receive low rates and good repayment terms. For example, legal resident of Massachusetts attending eligible schools in the state may receive No Interest Loans and borrow up to $4,000 per academic year.

Eligibility Criteria

The analysis by StudentAidAnswer.com has shown that not all states offer loan programs. However the states that are focused on providing loan assistance require applicants to meet residency requirements. Borrowers must be U.S. citizens and residents of the state. As an instance, Massachusetts you must be a resident of the state for one year prior to application date.

Another eligibility requirement students must satisfy is the attendance of eligible schools. Some state loan programs allow you to attend in-state or out-of-state higher education institutions. However here are programs that don’t allow applicants (residents of the certain state) who want to study in other state’s colleges.

Career-Specific Opportunities

In addition, a range of state offers benefits for career-specific applicants (nurses, teachers) in the form of loan programs and loan forgiveness/repayment. In fact, some states (e.g. state of Maryland) offer only repayment programs.

Maximizing Financial Aid

There are also state grant and scholarship programs available. Almost each state’s Commission on Higher Education administers some state financial aid programs.

Summing up, it’s important to note that prospective students have a good choice. There are federal student aid options (loans, grants, work-study), state student financial assistance and alternative/private institutions offering their educational programs.