Where do You Go to Get a Student Loan
Where do you go to get a student loan? Once you have chosen a school, the next question you have to ask is where do you go to get a student loan.
This depends on your current financial situation and the type of school you are going to attend.
To start, you should try and obtain federal student aid. This is a very low interest rate loan from the federal government.
Not only low interest, but also, they have favorable repayment terms.
They also have loan forgiveness options as well. For example if you are a teacher in an impoverished area.
From the federal government, you can get two types of loans. They are either direct subsidized or direct unsubsidized loans.
Unsubsidized loans are loans with interest being charged from the beginning of the loan.
A dependent student can get up to 5,500 dollars, while an independent student can get up to 9,500 dollars in the first year.
This will suffice for a lot of people. But if student loans are not enough, you would need to close the gap.
Having help from family is one way students can close the gap between costs and the amount they were able to borrow.
Another option is to use a private company for the remainder of their student loans. This should be after all loans have been obtained from the federal government.
Many banks and private institutions will loan money for school. Most allow you to apply directly for loans on their website. It may be more difficult to qualify for private loans.
This is where you may need a co-signer for the loan. A parent would usually do this or individual that is willing to repay the loan in the event you are unable to make timely payments.
If you are lucky you may qualify to get loans for your whole education. Securing loans for school takes a lot of pressure off the situation and allows you to study.
Obviously, education is a good investment and should payoff very well.
With interest rates so low, it is not as hard as it was in the past to get loans as long as you have a definite way to pay them back.
Many students wait until they are out of school before they start to repay their student loans. You do not have to do this.
If you plan to attend school for 4 or 8 years, if you make payments on your loan during this time you will have extra money to spend instead of working just to repay the loan once you have graduated.
Additionally most student loans do not require you to pay anything until you graduate.
What they do not say is the minute that the school gets the money, the lender begins to make money off interest every month even while you are still attending school so it only makes sense to make payments if you able because you will save money in the end.