Starting your search for student loans can be a daunting task, but it’s a good feeling when you’ve found your first. Here are 4 tips to finding that loan.
Think About Federal vs Private Loans
Your first stop in the student loan process should be the FAFSA or the Free Application for Federal Student Aid. This will give you the best starting point with low interest rates and options when it comes to repayment. However, the loans from the federal government may not be enough to cover all your college expenses.
This is where private loans come in. They’re a great option, but you’ll want to do your research and investigate the options available before jumping in.
Talk To Your Parents
If you just graduated from high school or are a senior, you will most likely need your parents information for the FAFSA. This includes general information about them, but also their income. You will need their assistance when filling out the forms online. There will also be loans just for parents available through the Department of Education.
If you’re in need of private loans, you will most likely require your parents or guardian to co-sign the paperwork. Most students don’t have the income or credit score required for these. It’s important to broach this subject with them now ahead of time, in case it becomes a need down the line.
Do Your Research
As with your prospective college search, doing your research for student loans is an absolute must. This article is a great starting point and you’ll find many others on the subject throughout College Raptor, but you will absolutely want to look deeper into the subject. You should understand the difference between unsubsidized and subsidized loans from the federal government, how interest rates work for private loans, and all the options available to you and your family.
Also do your research into your school’s potential loans. Many colleges and universities offer grants, scholarships, and loans that are granted either through their own applications or FAFSA. This is why FASFA is essential to fill out, even if you don’t actually need loans for the federal government. You don’t want to miss out on the possible awards.
Know What to Expect Afterward
A second part to your research includes knowing what to expect when your student loans come due. Some loans will require repayment to begin immediately, but others will only come due after you’ve either graduated or left school. Make sure to investigate exactly how you will repay them, when they’ll come due, and options available when it comes to consolidating and refinancing. This information will come in handy when it comes time to choose which loans you will accept.
It’s important to understand the ins and outs of applying for student loans and also what to expect before you complete any forms, whether it be for federal or private loans. Research is one of the most vital aspects of this time period. If you need assistance with finding student loans, make sure to either talk to the financial aid center at your prospective college or your high school’s guidance office.
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