Nevada College Students: Do You Need Student Loans?

A Primer for Federal and Private Loans

Before you go astray into a sea of student loan confusion, bookmark the Nevada System of Higher Education website. This is the state agency entrusted to provide college and financial aid information to state residents.

Information you’ll find on the site:

  • Links directly to each Nevada college or university
  • Financial aid guides
  • Information on state scholarships and grants

Simplify the Student Loan Process

Federal student loans provide the first level of student funding.

  • Stafford Loans are awarded in two versions—the subsidized, or need-based; and unsubsidized, or non-need-based. This is the best loan you can have. It’s user-friendly, free from scary credit checks and outfitted with flexible repayment options.
  • For cash-strapped parents of Nevada undergrads, the FFEL program includes the Parent PLUS Loan. This is a more affordable alternative to traditional home equity lines of credit or other costly strategies for creating cash flow.
  • Because grad students have ended up in alarming debt situations in recent years, the new-ish Grad PLUS Loan is now available. If you’re a Nevada grad student, met your Stafford Loan limits and still have scary bills to pay, give this loan a twirl before you shop for private loans.

Apply for all the federal aid programs by filling out the FAFSA, or Free Application for Federal Student Aid. If you don’t you exclude yourself from many other very valuable financial aid and scholarship programs that require applicants to have filed the FAFSA. Make this a top priority on your To-Do list for college.

Learn more about the federal student loan programs.

When to Borrow with a Private Education Loan

Remember, federal loans are a first step. Truth is most federal awards fail miserably to cover students’ costs. This leaves you with big gaps. Here is the situation in which you may begin to shop carefully for a private student loan lender. Your FFELP provider may even offer a product. Here are a few tips to keep in mind:

  • Borrow only what you need to pay your college bills.
  • Make sure variable interest rates have a reasonable cap.
  • Avoid loans with penalties for early repayment.
  • If you have no credit or poor credit borrow with a co-signor.
  • Know what the final cost of your loan will be.

Since Nevada does not endorse a private student loan, you are largely on your own. When you are informed you make much savvier decisions.

For more information on higher education in Nevada visit the Nevada System of Higher Education website.