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Lenders
There are many student loan lenders out there and most likely your university
has a preferred lender they typically use, however you do have the option
of choosing your own lender as well. Remember, however, to check with
your university to see what lenders are accepted for student loans.
Then, you can begin the task of researching the various lenders your
university accepts. This is not a difficult task if you do your research
on line because all of the lenders will have websites were you can easily
compare current student loan rates, maximum loan rates for each year
of school, tax breaks, the different types of loans you qualify for,
as well as repayment options and even consolidation information. The
student loan lenders offering federally funded student loans will have
the same interest rates on those loans because they are federally dictated.
However, private lenders will have varying rates so you should evaluate
these differences carefully. In addition to this, some college loan
providers offer benefits to students that make their services more appealing.
For example, some loan providers offer interest rate discounts to students
if they make 24 consecutive payments on time, not to mention waiving
the origination fee, any other benefits for electronic debit of monthly
payment and the like. You will also need to review consolidation options
and if you will give up any benefits by choosing to consolidate. While
there are many lenders out there, you simply need to do a little research
in order to find the best one for you.
Qualifying
Finding out if you qualify for federal financial aid and how much requires
you to fill out a FAFSA. This form requires income information from
the student and parents unless the student is independent in which case
only the student's financial information is needed. Then based on this
information the EFC, or expected family contribution, is calculated
and compared to the cost of the university's semester fees. Then, the
amount of federal student loan assistance you are entitled to is calculated
and the information sent to your institution of higher learning. You
can choose to accept as little or as much as the financial assistance
you qualify for. There are a variety of different loan types from subsidized
to unsubsidized Stafford loans, federal PLUS loans, grants, and other
various loan types. Your personal financial information and cost of
your university will determine the types of loans you qualify for.
Once you have qualified for student loans you simply need
to sign a promissory note, but this can even be done online with an
electronic signature if you want. Every aspect of the student loan process
is becoming easier with the Internet. If you do not qualify for federally
funded student loans you may be able to qualify for private funding
from banks. In this instance, however, the interest rates will vary
significantly and you should do more research into your options before
making a private lender decision.
Responsibility
While many students do need some student loans to help them pay for
college, many college students are taking out as much as they possibly
qualify for and then find themselves after four years with a huge debt
that must be repaid. After graduation students have a 6 month grace
period to find a job and begin making monthly payments. There are options
such as deference and different pay back options to help students meet
their obligations as well. However, meeting one's obligations is significantly
easier if students only take out the lowest amount possible because
then their debt will not be as exorbitant. For undergraduates, average
student loan debt after 4 years of college is $20,000. And for those
students who continue on to graduate, law, or med school will find their
debt load doubling, tripling, quadrupling or more. So, keep in mind
that loans are not free money and you will have to pay them back so
be responsible when taking out student loans.
Following these suggestions will help you find the best
college loan for your personal circumstances, just remember to read
all of the details.
Written by: University-College.net Staff Writer - Copyright University-College.net
all rights reserved
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