Picking the right student loan can be challenging regardless of your age or the experience you have had dealing with finances and financial institutions. Imagine how much more difficult it must be for students who have had limited experience, or in some cases no experience at all with handling finances. Without any hindsight or familiarity, it is all too easy to make wrong decisions and end up borrowing too much or too little money. Or worse still, borrowing from the wrong lender. This is where parents can offer invaluable advice that comes backed by experience.
So how can you as a parent help your student pick the right student loan?
You may not have the money to fund your student’s education fully, but there are several other ways that you can help them with picking a student loan so they can get the money they need.
Here are a few things you can do:
Borrow What You Need
Help your student understand how borrowing too much can impact their finances after graduation.
All About Interest Rates
Have an exhaustive discussion on interest rates, how interest accrues and how defaulting on their payments can have a serious impact on their credit history.
Assist your student with their loan applications, reading through the fine lines before they sign any agreement.
Agree to be a cosigner if necessary so their loan application gets approval.
Guiding your student towards making the right decision is crucial to protecting them from making disastrous financial decisions.
Sit down with your student and go through College Raptor’s new Student Loan Finder with them to compare lenders and interest rates side by side—for FREE!