It’s almost time to go back to school and many people will be entering college, but did they get the right loan? If you’re someone that hasn’t gotten a loan yet, these tips might be very helpful when choosing your loan!
- Get as many grants, scholarships, and low-cost federal student loans as you can! These are much better options than private student loans, so try to to turn to private student loans last.
- Research how much money you’ll be gaining once you finish college. This helps you realize how much will be in your power to pay back so you don’t drown in debt later on.
- Be careful with PLUS loans because they carry the highest rates of all federal loans and offer fewer repayment options.
- Understand that interest starts accumulating as soon as you take out an unsubsidized federal loan or private loan. Interest has a major impact on how much the overall cost of your loan will be.
- Know what the difference is form a variable-rate loan and a fixed-rate loan.
- If your funding needs aren’t met and you need to turn to a private lender, make sure to see what the rates and terms are from differente lenders to see what benefits you the most.
These are just a few tips to help you get the best loans you can without being in too much debt once you’re out of college. We hope you enjoyed your summer, and have fun in college!