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Student Loan: Educational Aid
By: Robert Thatcher iSnare Expert Author
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.
About the Author:
Robert Thatcher is a freelance publisher based in Cupertino, California. He
publishes articles and reports in various ezines and provides student loan
resources on www.your-student-loan info. |
