What Are the Best Federal Student Loan Programs?

The options of paying for your children's college education with a home equity loan or a line of credit are petty much null and void these days. We have looked into loan forgiveness programs and tuition assistance from employers and now we'll take a look at federal student loan programs as variable options for funding college educations..

-If you are looking to start college in 2009-2010 look into getting a Stafford loan. Stafford loans are federal student loans made available to college and university students to supplement personal and family resources, scholarships, grants, and work study. Nearly all students are eligible to receive Stafford loans regardless of credit.

-If a Stafford loan is still not enough look into a Parent PLUS Loan. The federal Parent PLUS Loan helps parents and guardians with good credit borrow up to the cost of the education for undergraduate children. Parent PLUS Loan funds can be used for tuition, supplies, housing and more.

• Do whatever you can to not get a private student loan.
• If you are graduating from college with student loan debt make sure you now your repayment options.
• If college savings are invested in the stock market and you are going to begin college in the next couple of years, you may want to start transferring those savings to safer instruments. The stock market is likely to continue its roller coaster ride for a while yet.

May is going to be college savings month for Financial Elite. Send us your questions about student loan programs and college savings.