Graduate or Higher Academics open important doors for an empowered life without exception. Seventy five thousand or more students from India come to United States every year to pursue academic excellence. This make Indians, the largest legal migrant population coming to America each year followed by Chinese. Most students graduate from college with a lifetime of memories and path to grand success. Unfortunately, a lot of students also graduate with a lifetime of debt.
The leading news paper USA Today carried an interesting article by Sandar Block on Student loan. She mentions that about two-thirds of students leave college with student loans; the average balance is $19,237. Some students who attend out-of-state public universities or high-cost private colleges graduate with much more debt. With college costs rising faster than most family incomes, some students have no choice but to borrow. For Indians coming for Management degree or Masters could be even more expensive. On an average, an Indian Student takes USD 30K as Student loan to pursue his or her academic dream. The figure would easily touch around USD 100K incase of branded 2 yrs Management course from Ivy League Universities like Harvard / Stanford / Columbia / Cornell or Princeton.
Unsubsidized federal Stafford loans have a fixed rate of 6.8% and are available to all American students. For subsidized Stafford loans, available for students who can show economic need, the rate is 6% for loans taken out after July 1.
However, the Private student loans, which aren't guaranteed by the federal government, have variable rates that are typically tied to the prime rate or another benchmark. Rates range from about 6% to more than 14%. But while the prime has been falling, rates for many private loans are moving higher.
The credit crunch has made it more expensive for some lenders to raise money for student loans. It is expected that rates for private loans will rise by a quarter of a percentage point to 1.5 points over the next few months. Student borrowers, who don't have a co-signer with good credit will sure pay much higher rates or might not be able to get a private loan at all.
Many American borrowers turn to private loans because they've maxed out on their federal student loans. As private loans become more expensive and harder to get, "Students may think twice before going to a more expensive school."
To make college more affordable, a growing number of colleges and universities have eliminated loans from their financial aid packages. For example, Colby College, a private school in Waterville, Maine, announced in January that it's replacing loans with grants, a move that school officials say will save the average graduate $14,000.
In a typical financial aid package, the college will calculate how much it thinks a family can afford to pay, known as the expected family contribution. The school will then offer a mix of loans, grants and work-study to make up the gap between that amount and the actual cost of college.
If you attend a school that's replaced loans with grants, you might still need to borrow to cover your family's expected contribution. But you probably won't have to borrow as much.You can find a list of schools that have reduced or eliminated loans from their aid packages at the website for the Project on Student Debt, http://www.projectonstudentdebt.org/ .
http://www.simpletuition.com/ , an American website, that lets borrowers compare loan rates and terms, is a good place to start your loan search. Of Course, Indian students have an additional option of taking loan from Indian Banks, before they embark the journey of higher studies abroad, which may or may not come without collateral security.
Manish Jaiswal
CEO – http://www.insurancemall.in/
manish@bonsaiinternational.com
Link - http://www.buynowindia.com/newsandreviews/index.php/Finance/
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