Are Student Loans Becoming Necessary Evils?

When it comes to getting a uni or college education most people can agree that, even though this is likely to be the best value investment you will ever make,  the costs can be staggering at best. Even the least expensive colleges can add up over a four or five year period of time creating crippling debt for those who do not qualify for some of the better grant programs of substantial scholarships.

Much if financial aid is means-tested and the problem lies in the fact that the parents of most traditional college students make too much money to qualify for the free financial aid that is needs based and very few qualify for the limited number of scholarships that are available to students based on merit. Even among those that qualify competition is fierce and there are no guarantees. Enter the student loan.

There are all kinds of student loans and unfortunately with rising costs associated with college attendance and the growing necessity of a college degree for success  it is becoming more and more difficult to pay the price that is associated with higher education.

There are three types of loans that are commonly found for college students. They include federal student loans, federal plus loans, and private student loans. Each type of loan has advantages and disadvantages that are unique to that particular loan. Below I will give a little information about each of the loan types and whom they may benefit. 

This post will focus mainly on the US system of student loans as we have received lots of emails from US students wanting some advice, we'll follow these posts up with the UK and other countries around the world as the demand arises from our readers.