It’s that time again. Summer is almost over; leisure time will be replaced with study time, and new school clothes and supplies need to be purchased. But this school year will be different in that you will be going to college.
Free education is over. You are entering a world where everything has a price tag. If you are fortunate enough to have wealthy parents you will probably have no worries. But for the majority of people that won’t be the case. So, what steps can you take to ensure there will be enough cash to meet your new expenses?
Hopefully, you have been planning right along for this major event by having a savings account. Even so, you will probably find it isn’t enough. So, what next?
School loans are the most common means of paying for ones education. Federal loans will most likely have the most realistic terms, so it’s best to exhaust any means of this type of loan first.
The benefits of federal loans are that they have flexible credit requirements, they usually allow a longer time to pay the loan off, possibly even deferring payments until your education is finished when you will hopefully have a good paying job. Your interest rates will be lower than other forms of loans, as well.
Private loans are another option. These can be a bit trickier to obtain, perhaps requiring excellent credit history, loaning to parents of students, rather than the student himself, and requiring a cosigner. Before applying, be sure to ask if you can apply to be preapproved for your student loan. This will lighten any stress you may feel about the process, as well as save you wasted time.
As time goes on in your educational process you may find yourself burdened with many loans. You may be able to attain a consolidation loan, wherein you may combine all your school loans into one, with one reduced payment and a lowered interest rate.
Education doesn’t come cheap, but school loans may help you achieve your goals.