Interested in getting a student loan to pay for your college tuition? You are not alone. It isn't rare for a student to borrow money for tuition, however times are changing. Since the dawn of the economic set back here in America, getting a student loan has become more competitive. Therefore, you must think outside the box when it comes to finding ways to finance your college education. First of all, the most important part of financing your college education is submitting a FAFSA application. Even if you don't qualify for student aide, you will be required to fill the form out before receiving student loans from the government. Why would you want a student loan from the government? They typically offer the most competitive rates and offer some unique advantages. There are two types of government student loans:
1) Subsidized - The government will pay your interest until the date of your graduation! This can save you thousands in payments!
2) Unsubsidized - The government does not pay your interest; however, you are still offered a competitive interest rate.
Once you fill out a FAFSA, you will be informed by the school of your choice about how much the government will loan you. For example, lets say that I applied to Sonoma State University. After I submitted my FAFSA, they sent me a reward letter stating that I could borrow twelve thousand from the government. Oh no! That means I will still be short a few thousand! What are my options?
Well, the FAFSA also exposes you to receiving all types of scholarships and grants. Even if you don't qualify for those, you can apply to have a private student loan at an independent bank.
Private student loans typically offer higher interest rates, but if you have no other choice they can potentially save you many headaches. Sometimes private banks will offer great specials with their student loans. For example, if you pay your first 12 payments on time, they will reduce your overall interest rate. This could be useful for some financial situations!
Hopefully this has gotten your feet wet with the student loan world! Good luck to you on your journey towards finding the right lender. Just remember, once you graduate you will easily be able to repay your debts and enjoy a fulfilling, educated life.
