Student Loan Advice – What You Need to Know

Student Loan Advice - What You Need to Know

You should not have to find out the hard way how to get student loans or what types of finance options there are.  Unfortunately many high school graduates do head off to college without thinking about the financial options.  Some students depend on their parents to find the resources, but others do not have that luxury.  Any student heading to college must know the below information.  Parents’ cannot always be there as we head into adulthood.  Lives get complicated and things change quickly.  Therefore, it pays to be prepared.  We have student loan advice to help you prepare for college.

Federal Students loans should be your first option.  FAFSA is the federal student loan program.  Each year you need to fill out the FAFSA form to determine how much a federal loan will pay for.  This is based on what your parents’ income contribution will be as well as the college you attend and degree program you are in.  These student loans provide the lowest interest rate, but they do not always cover your entire college expenses.  Federal student loans are more for the tuition and books.  You may also be able to get funds for on campus student housing.

If the student loan does not cover the entire college costs there are private student loans.  Private student loans can be through the state, a private lender, or any bank.  These student loans offer a higher interest rate. They can also have less than favorable repayment schedules.

Some private institutions require you to make repayments the minute you graduate or to pay interest during your academic studies.  You need to research the private lenders to determine who has the best repayment options and how their deferment plan may work.

The most important tip that can be offered is to do the research on your own.  Student financial aid offices are supposed to be there to help you.  They should tell you the information you need to know, help you get a loan, etc.  Unfortunately research into financial aid offices has shown that some college offices only provide certain student loans.  The lenders may offer the financial aid office incentives in order to get more students signed up.  Several students in the past have found out too late that the loan they took out was not the “best” option as the financial aid offices touted.  Not all offices do this, but you must be aware of it.  This is why researching on your own as well as asking for help is the best thing you can do.