Since 2006, students attending qualified online schools have been able to receive federal financial aid. However, as we've learned from the recent student loan scandals, it's always a good idea to research loans yourself. Several schools have been discovered accepting kickbacks for recommending certain lenders to their students.
A recent slate article argues that the student loan system is fundamentally flawed. Here's a blurb:
"If you know anything at all about the federal student loan program, you will not have been surprised by the scandal of recent months. The only amazing thing is that it has taken so long to arrive. Here's how the program works: Banks and other private companies lend money to students. The federal government pays part or all of the interest-currently 7 percent or 8 percent. The government also guarantees the loans.What is wrong with this picture? Well, the government itself borrows the odd nickel to finance the national debt. This borrowing, obviously, is also guaranteed by the government. For that reason, it carries an interest rate of only 3 percent or 4 percent. If the government can borrow money at 3 percent or 4 percent, why should it be paying 7 percent or 8 percent for the privilege of guaranteeing loans to someone else? Wouldn't it make more sense for the government to loan out the money itself?"
Federal student loans are still one of the best ways to get a low-interest rate and flexible terms. But, I agree that the system needs reform.
Top Online Colleges
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Kaplan University - Associate's, Bachelor's, & Master's Degrees. Kaplan University is a dynamic institution that offers accredited, online degrees to students seeking to jump start a new career. Kaplan University makes it easy for students to get the college degree that they want.
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Ashford University - Associate's, Bachelor's, & Master's Degrees. Ashford University has a rich tradition of online educational excellence. This excellence is shown in the quality of each class that every student receives.
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University of Phoenix - Associate's, Bachelor's, Master's, & Doctoral Degrees. University of Phoenix shows each student how easy and convenient it is to earn your college degree through their distance learning program. Students can choose to learn at home or from a campus location near you.
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Liberty University - Associate's, Bachelor's, & Master's Degrees. At Liberty University, students educational goals and needs are met by an outstanding faculty and support staff. Any adult learner looking to go back to school will be pleased with the course offerings available at Liberty University.
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American InterContinental University Online - Associate's, Bachelor's, & Master's Degrees. At American InterContinental University, every individual has an opporunity to receive an excellent college degree and the ability to maximize their human potential. American InterContinental University allows you to pick a time and place that fits your schedule.
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DeVry University - Associate's, Bachelor's, & Master's Degrees. Students who attend DeVry University are welcomed with an outstanding faculty who put each students needs and dreams first. DeVry University is an accredited university that offers affordable degrees.
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Everest University - Associate's, Bachelor's, & Master's Degrees. Everest University is committed to the on-going commitment of providing each student with a high-quality, low-cost online education. Everest University has a well rounded faculty with real world experience.
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Westwood College - Associate's & Bachelor's Degrees. Westwood College uses a student-centric approach to its educational curriculum and each student benefits from this ideal. Westwood College is an accredited university with degrees in high-growth industries.
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