Student Loans And Credit Cards

Q: Can I use student loans and credit cards to help me pay for college, since I have not found any scholarships I qualify for?

A: Most college students will need some form of financial aid to help fund their college education. There are many different ways to fund a college education, however to make certain you are making the best choices for your financial future you should follow a few guidelines: Scholarships and Grants: scholarships and grants will provide you with money for college, which unlike student loans and credit cards will not have to be repaid. There are thousands of scholarship opportunities available for all types of students. Scholarships can be based on academic performance, college major, short essay, and much more. For example, here are 10 easy scholarships for college any student can qualify for. Every student should take the time to apply for scholarships.

Federal Financial Aid: Federal Financial Aid for college includes federal student loans, grants, and work-study opportunities to help students pay for college. Before considering private student loans and credit cards, you will want to file a Free Application For Federal Student Aid (FAFSA at www.fafsa.gov). Federal student loans provide the lowest interest rates and most flexible repayment options. Most experts will agree that students should exhaust their federal financial aid options before considering something such as private student loans and credit cards.

Private Student Loans And Credit Cards: Though the interest rates on private student loans and credit cards can be comparable (depending on your credit), credit cards are not designed to pay for college tuition. Credit cards do not offer a payment deferment option (you will have to begin making payments immediately), unlike most private student loans, which allow your payments to be deferred until graduation. Though students may be tempted by Guaranteed Approval Credit Card or Instant Approval Student Credit Card offers, etc… students should not consider credit cards a good tool for funding their college education.