In many cases, going to college requires funding which leaves you with no option but to borrow money. This requires research in different student loan options and filling out long forms, all of which can be confusing.
There are many private lenders that come with all kinds of student loan offers, but remember that federally subsidized loans like the Stafford & Perkins tend to be much cheaper. Federal loans are also paid back after graduation, but the difference is that the interest on the subsidized loans doesn’t build up on you while you’re in school.
Private loans, on the other hand, usually compound and grow while students are in school. This means that if you wait to pay until graduation you could end up with overwhelming debt.
Eligible students shouldn’t skip on filling out the FAFSA, and miss out on those cheaper federal loans.
Here are some general tips:
- Maximize federal loans. Be sure to fill out a FAFSA, to make sure whether you’re eligible for additional assistance.
- Don’t over borrow. Many schools, especially public ones are affordable without the help of private loans at all. If you do need to take out a private loan, make sure to check the interest rates and fees before signing up.
- Seek advice from your financial aid office. They can point you towards loans that make the most sense for you.
loading...
