education, try to ask yourself first if you have savings left
that you can use instead of taking out a student loan from the
school of your choice. Also, think if you can get by with less
by way of holding down expenses, or if you can do something
great, like working more, either in the academic year or during
vacations just to support your education.
Also, think for the possible scholarships that you can apply
for, or you can be qualified for. There are actually a lot of
options left for you out there. The best move to take now is to
know and understand them.
Estimate Your Loan Payments
It is worthy to note that the more you borrow for your
education, the higher is the amount of your monthly repayments
will be once you finish your degree. So if possible, try to
estimate your loan payments. There are a number of student loan
repayment calculators out there that you can use to do the math.
What's more, you have the chance to calculate your monthly
payments based on the estimated starting salary of your chosen
occupation.
The Essential Borrowing Tips Now that you have pondered enough
about your student loan with the things you have to consider
before borrowing, as well as with the amount you need to borrow,
I guess it is now important for you to look at the most
recommended tips for borrowing student loans.
Just consider the following:
1. Start by looking at the award letter given to you by your
servicer. From the letter, figure out which need-based loans you
have been qualifies for and for what amounts.
2. After looking at the full financial picture, such as the
awarded aid, education cost, and family share, you should then
consider settling on an amount that you actually need to borrow.
3. The rule is: never borrow more than you need. Always note
that as a student loan borrower, you are not required to take
the full amount of the loan you have been offered.
4. Don't ever forget about student employment as an alternative
for borrowing. Even though working at a job can seem like an
extra burden for students, so is struggling with high loan
repayments after college.
5. Apply for the student loan right away. This is very
necessary especially if you want to ensure that the loan is
approved as well as the money paid to the college before you
have to make your first student account payment.
6. The key to successful application is to follow the loan
application instructions carefully. Note that any mistakes you
make will delay receipt of the funds.
7. When you are applying for a Stafford or Direct student loan,
be prepared for the amount that is paid to the college to be
less than the amount you signed for. Usually, a fee of up to
four percent will be deducted from the student loan. This
deduction occurs before the check is sent to the college of your
choice.
8. If you already figured out the exact amount you are
borrowing before any borrowing process begins, you should start
keeping track of your student loan tab, which is what your
monthly repayment amount will be after you graduated from
college. There are student loan calculators out there than can
do the math for you.
9. If instances occur that you find yourself needing more than
the amount that's been offered in your award letter, it is
necessary to contact with a financial aid counselor before
taking on an additional loan.
10. And, if you do take on an additional, unsubsidized loan,
just consider making interest payments while attending your
degree. The interest won't be much and this will help you save
money. If you delay or capitalize the interest payments, you
will end up having to pay back significantly less than.
Also, after leaving college consider purchasing a home instead
of getting an apartment. My wife and I fortunately did this a
few years after we left school, and we were able to pay back my
$26,500 student loan with a simple refinance that also lowered
our mortgage payments. We were able to do that within 8 months
of purchasing the home! What a relief it still is to this day
knowing that my education has already been paid back in full!
As mentioned, planning and thinking your moves for taking out
student loans is very necessary for a successful borrowing. If
you do consider what have been mentioned above, then there is no
doubt for you not to attain your dream education, and even a
successful career in the future.
Description
Ask yourself first if you have savings left that you can use
instead of taking out a student loan from the school of your
choice. Also, think if you can get by with less by way of
holding down expenses, or...
About The Author: Don Alexander is owner of
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