Why Should You Complete your FAFSA First?
While the Student Loan Finder can help you afford college, you should always start your college financial journey with the Free Application for Federal Student Aid (FAFSA) from the United States Department of Education. Even if you think you won’t qualify for any financial assistance because of your or your parent’s income, it is always worth filling out! Students can qualify for Federal Direct Student Loans regardless of income level.
The FAFSA is used to determine federal student loans and grant aid. Federal student loans tend to have lower interest rates than other sources. Colleges, universities, and scholarship programs may also use your application to determine whether or not you qualify for grants and other awards that are need-based.
When Should You Take Out Private Student Loans?
For many students, however, federal student loans, scholarships, and institutional grant aid
enough to cover the full cost of college. From tuition to housing, to books and personal expenses, there’s no doubt that higher education
is expensive. Private student loans can help you cover the gap between the cost of college and the aid
you’ve already received.
Do Students Need a Co-Signer for Private Student Loans?
Students who are just graduating college rarely have built up their credit score sufficiently to be approved for private loans directly. Many private lenders, therefore, require students to have co-signers in order to take out student loans.
A co-signer with a good financial history will typically receive lower interest rates offers from private lenders.
Why is a High Credit Score Important for Student Loans?
Although your credit score won’t affect the interest rate on federal student loan offers, it will have a big impact on your private student loans. This number can be used to determine just how much money you qualify for as well as your interest rate. For private student loans, the higher your credit score, the lower your interest rate typically is!
Lower interest rates will save you money over time, especially if you have a longer loan term.
Get Started Today with the Student Loan Finder!
If you’ve discovered that the cost of college is out of reach with current loan offers and scholarships, it’s time to use our Student Loan Finder to help you find the best loans, terms, interest rates, and options for your financial goals. Use the Finder Tool above to get started and begin comparing your student loan options!