You are one of the bright students in your school with a sterling record. However, the lack of money for a college education casts a shadow on your sunny future. Do you give up hope? There is still a silver lining in student loans. If you haven’t heard of how to obtain one yet, you can get some information here that can help you decide.
A student loan is not a grant or a scholarship. If you can obtain any of the two, that is better since you will not have to payback a single centavo. However, if you do not qualify for a grant or a scholarship, your other option is to obtain a student loan. There are federal loans and private loans out there. All you need to do is to make comparisons of the rates and terms to get the best ones.
There are a lot of things to consider also when applying for a loan. You have to answer the following questions:
1) How much is the budget for the college tuition? You need to know how much is the cost of tuition of your preferred college so that you will know how much to borrow. This is the biggest cost of the student loan.
2) What are the other incidental expenses? You might decide that you need a laptop or a kindle or whatever other equipment you might need in school. You have to factor that in.
3) How much can you afford to pay in the future when you graduate? You have to know what kind of job you will be applying for when you graduate and how much this type of job pays. Therefore when you apply for a student loan, you will have an idea if you will have an easy time repaying your loan.
When you graduate, you will not be charged right away by the creditor. You have a grace period of 6 months before your get billed. You can use this time wisely in looking for a job that will suit you. This is the best time to go job hunting and saving your money. If you followed the guideline above about knowing how much you can afford to pay when you graduate, you will not have a hard time paying back your loan.
There are however other options should you be unable to payoff your student loans.
1) Deferment- with a deferment, you temporarily defer paying the loan. But you have to qualify for this.
2) Forbearance- if yu don’t qualify for deferment, you can apply for forbearance. With this, your payments are postponed or reduced but you will still be charged an interest. Interests will accrue if you do not pay these.
A student loan could be the first major loan that you will get in your life. Therefore, give it the attention that it merits. Not paying your student loans has considerable repercussions. You will have a hard time applying for other loans in the future if your credit rating is affected. You could also jeopardize your other privileges as an income earner if you neglect to pay your student loans. Do not waste your hard-earned college education. Prove to your parents that you are a responsible individual who can handle obligations.
Thing to consider when applying for a student loan and tips when you have to pay it back at student loans. This article, Borrowing and Repaying Your Student Loans is available for free reprint.