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Choosing A Student Loan Wisely
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Choosing A Student Loan Wisely

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 of paying 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 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

Types of Loans offered

Stafford Loans are made directly by the government to assist students

SalliMae Loans are student loan for students enrolled at least half time at an accredited school

Perkins Loan are low interest loans for undergraduate or graduate students with very low incomes

National Direct Student Loans

College Work Study

Questions to consider before signing your student loan

What types 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 loan?

What will be the consequence if you do not pay your loans?

Will you have a co-signer?

Is there a grace period?

Will you attend school as a full-time or part-time student?

Will the interest rate on your student loans be fixed or adjustable?

Familiarize yourself with terms the "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 loan 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 afford 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 fill out the FAFSA. The FAFSA is a financial need application which needs to be done yearly no matter what your income is. It is based on you and your parents 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 determins the amount you will receive, and whether it will be a grant or 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 eligible for financial need. Each school gets a limited amount of money from the government and you need to try and get 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


Street Talk

Good article been thinking of doing a niche on loans, research right now thank you

Reply
  about 6 years ago

Good article on choosing a student load wisely Barbara! Thanks for sharing the basics of successful student borrowing.

Reply
  about 7 years ago
  

thanks, Cynthia

Reply
  about 7 years ago

Glad Street Articles reminded me to peek back again:-)

  
  about 7 years ago

All very good points. There are so many options today over burying yourself in debt.

Reply
  about 7 years ago
  

thanks, Shawn

Reply
  about 7 years ago

Thanks barbara9 I have read some real horror stories about how much in debt some students are because of student loans. this article will certainly help.

Reply
  about 7 years ago
  

thanks, John

Reply
  about 7 years ago

Nicely done. You showcase very well what to watch out for --as well as all the plans to put in place, what you need and budgeting. Bravo! Money's a good choice for a photo here:-)

Reply
  about 7 years ago
  

thanks Cynthia, I tried to present an article which will help individuals in their search for a student loan.

Reply
  about 7 years ago

You did it well - I know when I borrowed for schooling it sure took a long time to pay back. Though waay back then there were not many ways to figure out what to do.

  
  about 7 years ago
Golfspice  

Great check list, advice and recommendations - very useful.

Reply
  about 7 years ago
  

thanks, Golfspice

Reply
  about 7 years ago
C4rmen  

Yeah great info about a very important topic for many. Personally when I commence my higher education later this year I will be paying for a subject at a time. I just dont want the debt and luckily the institution has flexible options. But that isnt always the case depending on the course chosen, so this sort of resource is a good thing for people considering all the angles with :)

Reply
  about 7 years ago
  

thanks, C4men all the best with your future plans

Reply
  about 7 years ago

Hey Barbara, you should make a site out of this excellent guide! Think about it, it would be so useful for so many people!

Reply
  about 7 years ago
  

thank you Maria, I'll keep your advice under consideration.

Reply
  about 7 years ago

This article is a terrific guide Barbara. Education is essential and unfortunately can be very expensive at a time when many people don't have much money!

Reply
  about 7 years ago
  

thanks, Heather

Reply
  about 7 years ago

Very well researched and informative article, Barbara. It will be a big help to people.

Reply
  about 7 years ago
  

thanks, Georgia.

Reply
  about 7 years ago
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