Student Loan: Educational Aid
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.