Most people that go sought after higher education will at some point take out a student loan. Most however, ever read the fine print and that could potentially spell disaster. Here are somethings to consider when you are looking for a student loan.
3 Different Loan Types
There are federal, private, and state loans available to you. All of which have different terms and conditions that you need to meet so be prepared to compare and contrast all 3 types to make sure you pick the student loans that fit you best. If you are looking for a federal loan, you can go to nslds.ed.gov. In there, you can see a list of federal funded student loans. You can also try lendkey.com to get a student loan.
Loan Balance & Tracking
Once you’ve applied for your loans, make sure to track your balance and see how they all change over time. Do not be like most students and just sweep it under the rug and not look at it again until you graduate. If you do, then you could end up in a financial crisis upon graduation. Even a usual 6 month grace period will not be enough time for you to pay off the interests since getting a job right out of college is not as easy as before.
Loan Interest & Payments
If you are going to take out a loan, then it will serve you well to understand the time value of money. Learn how interest rates of these loans will start to balloon in excel. You can use the built in finance formulas of present value (PV) and future value of (FV) to track your potential financial obligations. This will help make sure that when you graduate, you won’t get burden with a huge loan obligation. Know your payments that you will need to pay and you will be ahead of the game.
Student Loan Forgiveness, Student Loans Consolidation Programs & Repayment Options
Out of all the different loans, federal loans usually have the best repayment options. The extensions are usually the longest with those loans. However, sometimes private loans have yearly payments instead of monthly. This can be used to your advantage if you can grow your earned income and pay off loans with a growing principal.
If you have successfully landed a job right after college then you could look into automatic payments. Doing so this way will give you peace of mind. If you have done your homework to see how much you will need to pay per month before then match it up with how much you earn, then it will be easy to see that you are on the right track in paying off all your loans without headaches. The last thing you want is to depend on loan forgiveness and similar types of scenarios. These events seldom happen and it will ruin somebody financially if it’s not you. However, it never hurts to try either. Here is our recommendation:
FREE 5 minute consultation to see if you’re eligible for Student Loan Forgiveness or Consolidation Programs.