The cost of attendance for higher education continues to rise every year. With that, it is more important than ever that you carefully consider your loan options to set yourself up for long-term financial success.
The financial benefits of a college degree are clear. In fact, according to a study by the Association of Public and Land-Grant Universities, as a college graduate you can earn, on average,than those with high school degrees. Even so, many students drop out of college due to unaffordability. This leaves them saddled with student loan debt without a degree to show for it.
To avoid this, there are several options you can choose from if you need additional funding to complete your higher education beyond what you receive from federal student loans.
Your first option involves securing more funding from sources other than the federal government. Private lenders, such as banks and credit unions, offer student loans that can be used to supplement federal student loans.
Private student loans may have higher interest rates and different loan structures than federal loans, so it is important to shop around for the best deal and understand the terms and conditions before taking out a private loan. .
Instead of borrowing more money, you may be able to reduce the amount you need to borrow by earning a scholarship or grant. You can search for scholarships and grants that are offered by private organizations, foundations and even the school you attend. Numerous websites, such as
Additionally, many colleges and universities offer their own scholarships and grants to students who demonstrate financial need or meet other criteria.
Federal work-study programs allow you to work part-time on or off campus to earn money to help pay for your education.are typically related to your field of study and offer valuable experience in addition to funding.
Students can use personal savings or receive financial assistance from family members to help cover the cost of tuition and other education expenses.
Private student loans are loans offered by private financial institutions, such as banks or credit unions, that you can use to pay for your education.
Federal student loan borrowers often use these private loans when they have reached their maximum federal borrowing limit or need additional funds beyond what is available through federal student loan programs.
Private student loans may be best suited for you if you have already exhausted all your federal student loan options or if you need to borrow more money than is available through federal student loans. However, private student loans may come with higher interest rates than federal loans and may require a cosigner, such as a parent or guardian, to qualify. The student loans offered through the Edly platform are an exception, however, and do not require a cosigner.
When you take out both federal and private student loans to finance your degree, the repayment terms are independent. In other words, you would be responsible for making payments and keeping track of the terms and conditions for each loan separately, making separate payments.
In summary, private student loans can be a good option if you have exhausted your federal student loan options or need to borrow additional funds beyond what is available through federal loans.
However, you should carefully consider the pros and cons of private loans and compare them to federal loans before making a decision. It is also important to shop around and compare terms from multiple lenders before selecting a private loan.
See if you qualify for our private
Some private lenders offer student loan funding without a cosigner. Through Edly , for instance, you can apply for a
Repayment plans will also vary across different lenders. With student loans offered through the Edly website, your monthly student loan payments are based on the amount you earn after graduation through an income-based repayment plan. As compared to a fixed payment that can become unaffordable at lower income levels, payment amounts for student loans offered through Edly’s site will flex up or down based on your income. Additionally, loans available through the Edly platform allow students to request forbearance if they lose their job or are making below the minimum income.
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Scholarships and grants are both forms of financial aid that you can use to pay for your education, but there are some key differences between the two.
A scholarship is a type of financial aid that is typically awarded to students based on merit or achievement. Scholarships may be awarded for academic excellence, athletic ability, artistic talent, community service, or other accomplishments. Scholarships are often offered by private organizations, corporations, foundations and universities.
A grant, on the other hand, is a form of financial aid that is typically awarded based on financial need. Grants may be awarded by the federal government, state governments or private organizations. Grants do not need to be repaid, unlike loans.
Qualification criteria for earning a scholarship or grant can vary depending on the specific program.
In addition to these criteria, scholarships and grants may have specific application requirements, such as essays, letters of recommendation, or interviews.
It is important to carefully review the qualifications and application requirements for each scholarship or grant you are interested in and to apply for as many opportunities as possible to increase your chances of receiving financial aid.
Work-study programs are a form of financial aid that allow you to work part-time jobs on campus or with approved off-campus organizations to help pay for your education. These programs are typically administered by colleges and universities and are available to undergraduate and graduate students who demonstrate financial need.
You can apply for work-study jobs through your college or university's financial aid office.also displays resources for finding work-study opportunities.
The process for applying may vary depending on the school, but it typically involves filling out a work-study application and submitting it to the financial aid office. You may also be required to submit a resume and go through an interview process.
To be eligible for work-study programs, you must demonstrate financial need by completing the
One of the benefits of work-study programs is that they provide students with the opportunity to gain work experience and develop skills that can be valuable for future employment.
Overall, work-study programs can be a valuable source of financial aid if you need to earn money to help pay for your education. You should check with your college or university's financial aid office for more information on work-study opportunities and how to apply.
It is important to carefully consider your options and make a plan for how you will pay for your education. In some cases, it may be necessary to combine multiple funding sources to cover the full cost of tuition and other expenses.
At Edly, we partner with FinWise Bank to offer undergraduate loans for juniors and seniors, students in graduate school or undergraduate students who are within two years of graduation for specific programs. These income-based repayment loans do not require a cosigner and are structured to flexibly adjust with your income to stay affordable as you advance your career and your life.