Student Loan: Educational Aid
Student loans are offered to students
to assist them in paying the required fees. Student loans are generally
lower compared to other loans and is issued by the government most of the
time.
Typically student loans differ
from country to country. In Australia for example, students can pay for
university courses using the Higher Education Contribution Scheme (HECS).
The selection criterion for HECS is based on the student s rank achieved
in the secondary school final examination. HECS fees are government-subsidized,
and are substantially cheaper than full-fee paying places which have lower
entry requirements.
In Canada however, students
are normally eligible for loans provided by the federal government, not
withstanding the loan offered from province to province. The loan are amazingly
interest free until the student graduates.
Students can apply to the loan
through their provincial residence. The province of residence is normally
the place where you lived long before you become a student.
The Canada Student Loan (CSL)
provides for a maximum of $165 per week of full-time study, and more money
from their province of residence. All Canadian students may also be eligible
for the Canadian Millennium Scholarship Foundation Bursary (CMS Grant),
and other grants provided by their province of residence.
Almost all, charter banks in
Canada have programs for professional students which can provide more funds
than normal in the form of a line of credit, sometimes with lower interest
rates as well. Students may also be eligible for government loans that
are interest free while in school on top of this line of credit, as private
loans do not count against government loans/grants.
The student in Ireland enjoy
the third-level tuition to be free since 1997. For other expenses of the
students, the major banks an interest free system of loan.
In New Zealand however, the
student loan are offered only to tertiary students who passed the criteria
imposed by the government. Full-time students can claim loans for both
fees and living costs while part-time students can only claim training
institution fees.
Good thing, on 2005 general
election, one of the policy from the Labor Party is that all interest charges
on student loans should be abolished.
In United States, loans come
in many form in this country. Noted are the forms and kinds of loans:
The Federal Student Loans made
to students directly: No payments until after graduation, but amounts are
quite limited.
Federal Student Loans made
to parents: Much higher limit, but payments start immediately.
Private Student Loans made
to students or parents: Higher limits and no payments until after graduation.
Federal student loan borrowing
grew first and foremost since the utmost loan limits were increased and
middle- and upper-income students became eligible for Stafford Unsubsidized
Loans.
On the other hand, regardless
of the increases in cumulative debt that occurred, most undergraduate loan
recipients appear to be able to repay their loans with little difficulty,
as long as they complete their degree programs.
However, repayment obligations
are much more difficult for professional school students, who oftentimes
left their institutions with debt of $100,000 or worst, more. This is also
or undergraduate borrowers who do not complete degree programs.
Perhaps, more research would
grant better insights and be an eye opener into how debts can affect these
students after they leave higher education.
Author-Bio: Robert Thatcher
is a freelance publisher based in Cupertino, California. He publishes articles
and reports in various ezines and provides student loan resources on http://www.your-student-loan.info. |
