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Furthering or continuing education is a worthy and noble desire. However, most individuals cannot afford to pay so most individuals take out loans. Student loans are the most common way to pay for college. Although grants is the most preferred method to pay for schooling, many people do not qualify for a grant. Nevertheless, this should not be a stumbling block in the pursuit of higher education.
The cost of continuing education is expensive and shows no sign of diminishing. Therefore, students have to be wise and get affordable student loans.
How can an individual do this
1) Research
2) Compare
3) If possible, read reviews
4) Read and understand terms of the loan
5) Be flexible
6) Look carefully at interest rates
7) Ask questions early rather than later
Type of loans offered
Stafford Loans are made directly by the government to assist students
SalliMae Loans are student loans for students enrolled at least halftime at an accredited school
Perkins Loans are low interest loans for undergraduate or graduate with very low incomes
National Direct Student Loans
College Work Study
Questions to consider before signing your student loan
What type of student loans do you want?
What company will hold your student loan?
What will be your repayment options?
What will be your options if you default on your own?
What will be the consequence if you do not pay your student loan?
Will you have a co-signer?
Is there a grace period?
Will you attend school as a part- time or full-time student?
Will the interest rate on your student loans be flexible or adjustable?
Familiarize yourself with the terms "determent and forbearance"
Many states have their own student loan programs. Most of these loans are for students who pledge to teach or practice in the state granting the loan.
Players in the world of student financing
a) private lender
b) federal government
c) lenders
d) university and colleges
e) state student loan agency
f) companies on the secondary market
g) loan services
h) guarantee agencies
Make a realistic budget and stick to it. Know your rights and responsibilities as a borrower and how much you can affored to pay. Think through the options, consider each of the options comparing all of them to each other then determine what are the drawbacks of each loan.
All potential students must fil out the FAFSA. The FAFSA is a financial need application which needs to be done yearly no matter whast your income is. It is based on you and your parent's income from the previous year. The report from the FAFSA is sent to the colleges of your choice, then the college's financial aid office actually determines the amount you will receive and whether it will be a grant or a low interest rate loan, subsidized or unsubsidized that you pay back after graduation.
The FAFSA need to be filled out as soon as possible, especially if you are elegible for fianancial need. Each school get a limited amount of money from the government and need to try your completed FAFSA processed quickly to be considered. Every guidance office in high school and the financial aid office at colleges should have the FAFSA. You can also apply on line.
Before you sign on the dotted line, consider the basics of successful student borrowing:
Plan ahead
Don't borrow more than you need
Make a budget and stick to it
