When it comes to higher education, credits are almost synonymous with credit and subsequent debt. The cost of a college education in the modern world has risen exponentially over the years, with the opportunities available to students also expanding considerably. In this article, we'll consider the student loan options available through Zions bank, and the requirements that must be met in order to utilize them. As will be demonstrated, students loans are often an essential facet in the higher education pursuit of an individual, with Zions Bank providing valuable information and opportunities.

Zion's Savings Bank and Trust Company is an organization that provides value to individuals, small-to-middle-market businesses, nonprofits, institutions, and corporations. Zions presents a wide range of traditional banking and innovative technology services. The organization is dedicated to supporting the economic development of communities in which the bank operates, demonstrating a strong commitment to social responsibility.

What Are Student Loans?

Student loans are the means of financing that students acquire through which to pay for the increasingly high cost of higher education. For a student to attend a private university, they can expect to pay an average of $50,000 annually for tuition alone for higher-tiered college and universities. This cost of $50,000 annually is for tuition, and does not include the cost of books, as well as rent and food, or if living on campus "room and board." It is not uncommon for the cost of higher education to exceed $70,000 annually with all expenses included, with even public schools for in-state students costing over $20,000 annually.

Given the high cost of student loans and the fact that most high-school students have not effectively earned sufficient money through part-time jobs to pay for college, loans are often necessary. While one would think that parental involvement and permission are essential to acquiring student loans, this is not always the case, depending upon the lender. For example, there are federal loan options such as the Federal subsidized or unsubsidized loans available through loans.gov. Such loans are generally guaranteed to all applicant students in good standing and often have competitive interest rates.

Beyond federal loans that are available to the student, there are also a variety of private student loan options that can be pursued. Private student loans are generally more difficult to acquire and may demand that the applicant put up collateral to acquire them. This may, in turn, require that the student have their parents or other persons cosign on their loans to enable them to secure them or to secure a more favorable interest rate. Whether publicly or privately sources, the loans must be repaid, and often the interest rates are daunting when the duration of time they'll be paid on is considered.


Deferred Payments

Students attending school on loans need not pay back the loans immediately. Rather, during the period of active enrollment on behalf of the student, the loans are not due, although they do continue to accrue interest. Following graduation, many loans have a grace period of 3 or 6 months during which time the student is expected to align employment sufficient to begin repaying their loans. When payments cannot be made due to a lack of sufficient employment, there are, at times options through which the student may further defer their loans until such time as they can make payments.

Deferring a student loan is possible based upon economic hardship in some cases, although most public and some private student loans can also be deferred by again enrolling in school at minimum a half-time program, in pursuit of a certificate of learning or degree in higher education. For example, a student may complete an undergraduate, then enter law school and defer their undergraduate loans until after they've graduated from law school. If loans are taken out for the graduate school, upon finishing one's education, we are able to re-consolidate the loans from undergrad and grad to achieve a superior rate.

Zions Bank - Student Banking

student using laptop

When it comes time to attend college, the costs quickly add up between tuition, room and board, fees, and the increasingly high cost of books. To support your college career, the use of a student checking account through Zions Bank is a viable means of ensuring that you have adequate access to the capital we need to succeed in school. A checking account also provides a means through which we can better track our spending and income, providing us valuable insight into how our finances operate.


Anytime Checking

Opening an Anytime Checking account with Zions Bank as a student is a simple process that provides us with the ability to better track and manage our financial well-being. All new accounts that sign up through the website's products section receive a limited-edition water bottle and are entered to win one of five Apple watches being offered as an incentive. The opening of such an account provides for financial tracking, and also a deposit account through which savings can be built upon.

Student checking is not simply reserved for college students but is also an important tool for younger individuals as well. For students who are still in high school, Zions bank offers the "Young Savers" program. Through this program, the student is able to begin establishing positive money management habits early on in life. The money can be used to begin to save for the college fund or to set aside a budget to pay for school books, materials, and other extracurricular activities. Establishing positive financial management skills early on is highly beneficial, and the Young Savers program can support this.


Additional Incentives

There are additional incentives in place with Zions Bank to encourage students to achieve competence beyond their financial management. Outside of the potential of opening banking accounts, Zions Bank also offers an academic rewards program for students who do well in pre-college school, whether in middle school, junior high, and high school. All middle school, junior high, and high school students between the ages of 12-18 who live in Idaho and Utah earn $1 for each "A" on their report cards, with eligible students also entered to win $1,000 scholarship savings accounts.

The rewards for the eligible students receiving as in their academic careers vary depending on whether the student has a Young Savers Account with Zions Bank. For students with a Zions Bank Young Savers Account, $1 for each A is deposited into their account. Students without an account at Zions Bank are still given $.50 per A that they receive, demonstrating the company's commitment to the achievement of students is large. Such strong support for educational achievement is an additional way in which Zions Bank gives back to the communities in which their banks operate.

Zions Bank student banking options provide the student with the means to harness their financial future through effective management. Student banking accounts with Zions Bank include mobile banking, bill pay, online banking with bill pay, eDocuments including eStatements, eNotices, and eTax documents, as well as additional features.

Requirements to Utilize Student Loans

Students who are in pursuit of a bachelor's degree, associate's degree, or a certificate at a degree-granting school can acquire student loans through Sallie Mae as linked through Zions Bank. Students may borrow from $1,000 up to the full cost of attendance for their institution. The variable rate starts at 4.25% APR and caps off at 11.10% APR, while the fixed interest rate varies from 5.74% to 11.85%. To utilize student loans, and to determine the amount of interest that will be charged, creditworthiness is an important requirement. 

Prospective borrowers must meet a variety of requirements prior to acquiring a student loan. The borrower must meet the age of the majority in their state, and they must have sufficient income and credit to meet the minimum requirements for the loan. When a student is lacking in sufficient credit, they may pursue the use of a cosigner, often a parent, whose credit is then effectively borrowed to align the loan.

Conclusion

students listening in class

Once we've made the decision to attend college, one of the most important decisions thereafter, and one that will have an equal if not greater impact upon our future is the way in which we choose to finance our higher education. For many, entering into student debt is an absolutely essential step in the process of achieving a college education. When making such a decision, it is important that all the right information is possessed to ensure that the outcome is not ultimately negative.

One should decide the amount of loans that are taken out for higher education with a realist perspective in place. This requires that the earnings potential that may be realized upon completion of the degree be taken into account. Going hundreds of thousands of dollars in debt to attend a private college for a position that would be lucky to earn in the low tens of thousands annually would essentially lock the student into a life of indebtedness. It is important that tools such as those provided by Zions Banking be capitalized upon by hopeful students to ensure that their loans do not surpass their earnings potential. 

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