School loan consideration
Student debt consolidation is when you refinance each of your federal school loans into a single loan that has a fixed interest rate. It is also the term used to describe refinancing a single student loan with a new interest rate. The interest rate of the student debt consolidation loan is derived from the average rate of each of the loans combined. The interest rate you receive when you get a student debt consolidation loan should result in less money spent over the long term of repaying school loans. What many students are unaware of, is that you will be unable to get a student debt consolidation loan to combine your federally funded student loans with your private loans. When you consolidate federally funded school loans, they can only be consolidated with a federal loan program .
Today, more than half of all students graduate with a student loan debt of at least several thousand dollars. Many students graduate with tens of thousands of dollars in education loan debts. While paying for a university education is important in order to guarantee a good job, student debts can be a considerable problem. If students are earning only entry-level salaries after graduating, a large debt can be difficult to repay. The consequences of defaulting on student loans can affect student credit history negatively. Luckily, there are good ways to deal with education loans in a way that makes these debts affordable.
Before You Apply for Student Loans and Financial AidMost experts suggest that dealing with student debt begins at the application stage. When filling out student loan applications, students should:
Look for a Wide Variety of Financial Aid, Including Loans and ScholarshipsWhen applying for student loans, experts recommend that students look for wide variety of student financial aid, concentrating on the least expensive types of financing. Students who get their financial aid from scholarships, grants, savings, work-study programs, as well as loans invariably spend less money and have smaller debts than students who get their entire school funding through loans.
Look for the Least Expensive Ways to Pay for SchoolTo keep education loan debts small, look for free sources of funding first -- such as grants and scholarships. After that, students should focus on need-based federal student loans, which can offer great savings on interest rates. After that, students should look at private education loans, especially those with competitive rates. Student should rely on high-interest forms of aid -- such as credit cards -- only in emergencies, as these can quickly add up.
Consider Less Expensive Schooling Options to Make Financial Aid Less NecessarySome students choose to attend public colleges, colleges close to home, or online or distance education programs. Each of these options is less expensive than a private college or university but can still offer quality education. Plus, these options still allow you to borrow for your education. If you can get a quality education from a less expensive source, you may need to take out less in student loans.
Apply for Need-Based Financial Aid if PossibleApplying for need-based government financial aid and government need-based loans is one of the least expensive ways to borrow for school.
Start Looking for Student Financial Aid EarlyExperts stress that the earlier students are looking for financial aid, the more likely they are to get all the money they need without enormous debts. Many scholarships and types of aid are available to even grammar school age children, and of course starting to save early can help a student financially prepare for college or university.
Today, more than half of all students graduate with a student loan debt of at least several thousand dollars. Many students graduate with tens of thousands of dollars in education loan debts. While paying for a university education is important in order to guarantee a good job, student debts can be a considerable problem. If students are earning only entry-level salaries after graduating, a large debt can be difficult to repay. The consequences of defaulting on student loans can affect student credit history negatively. Luckily, there are good ways to deal with education loans in a way that makes these debts affordable.
Before You Apply for Student Loans and Financial AidMost experts suggest that dealing with student debt begins at the application stage. When filling out student loan applications, students should:
Look for a Wide Variety of Financial Aid, Including Loans and ScholarshipsWhen applying for student loans, experts recommend that students look for wide variety of student financial aid, concentrating on the least expensive types of financing. Students who get their financial aid from scholarships, grants, savings, work-study programs, as well as loans invariably spend less money and have smaller debts than students who get their entire school funding through loans.
Look for the Least Expensive Ways to Pay for SchoolTo keep education loan debts small, look for free sources of funding first -- such as grants and scholarships. After that, students should focus on need-based federal student loans, which can offer great savings on interest rates. After that, students should look at private education loans, especially those with competitive rates. Student should rely on high-interest forms of aid -- such as credit cards -- only in emergencies, as these can quickly add up.
Consider Less Expensive Schooling Options to Make Financial Aid Less NecessarySome students choose to attend public colleges, colleges close to home, or online or distance education programs. Each of these options is less expensive than a private college or university but can still offer quality education. Plus, these options still allow you to borrow for your education. If you can get a quality education from a less expensive source, you may need to take out less in student loans.
Apply for Need-Based Financial Aid if PossibleApplying for need-based government financial aid and government need-based loans is one of the least expensive ways to borrow for school.
Start Looking for Student Financial Aid EarlyExperts stress that the earlier students are looking for financial aid, the more likely they are to get all the money they need without enormous debts. Many scholarships and types of aid are available to even grammar school age children, and of course starting to save early can help a student financially prepare for college or university.
If you want to find the best private education loans, you simply cannot select and apply for the first loans you encounter. Finding the best loans - whether they are education direct loans, private student loans, or some other type of key education loans, involves a long process of analysis, research, and application. This is why almost all financial aid experts suggest that you start applying for financial aid as soon as possible.
Your Student Loans and Need AnalysisBefore you start applying for student loans and financial aid, you need to run a need analysis. This simply means that you must decide how much money you need for school. To do this, you must add up tuition, school fees, living expenses, medical insurance costs, books and school supplies, transportation, and entertainment. You must determine how much you will need each year you are in school and how much you will need overall for the entire length of your degree program.While you are determining how much you need, you may also want to note down your resources. If you have a job or savings, for example, you may use some of this money to pay for your expenses. When you are trying to decide how much you will need, it is generally better to err on the side of caution. Always estimate that you will need more - not less. This will ensure that you are not caught short of funds while at school.
Which Types of Student Loans is Right for You?Depending on the program or school you attend, you may need one or more types of loans:
Student LoansMany of the best private education loans are simply marketed as “student loans.” Some of these are meant mainly for undergraduate students, while others are intended for any students who require money for school.
Adult Student LoansIf you are taking part in adult education classes, these loans can help you pay for your schooling. If you are returning to school as an adult student, and so do not qualify (because of your age) for many student loans, adult education loans may be for you.
Continuing Education Student LoansIf you are taking continuing education classes or certification programs to improve your job skills, special loans that are more flexible can help ensure that you get the funding you need.
Higher Education Student LoansIf you are a graduate student, a number of loans are created especially for you. In many cases, these allow you to borrow larger sums, as graduate school tends to be more expensive.
Sources of Education LoansThere are several sources available to you for education loans. If you're looking for loans and other financial aid, be sure to consult:
Your School's Financial Aid OfficeYour school's financial aid office administers loans offered by the federal government in other sources. Some schools also offer their own loans and financial aid solutions. Your school's financial aid office can help you fill out forms for loans and can tell you about all the types of financial aid you qualify for. Even if you do not consult any other sources for financial aid, you simply must visit your school's financial aid office if you wish to be able to afford your college education.
The Federal GovernmentThe federal government makes a number of loans available to students. The Federal Stafford loans, Perkins loans, and PLUS loans help students afforded their education. To apply for federal government funding, you must fill out the FAFSA (Free Application for Student Aid) form online or at your school's financial aid office.
Banks and Financial InstitutionsLenders -- including banks, lending companies, credit unions, and others -- make loans available for students. These loans tend to be based on your credit history, so you either need a cosigner or an excellent credit score to qualify. However, these loans tend to be more flexible than other types of loans. That is, if you are attending a nontraditional school or have specific needs, banks and other financial institutions will often be able to help you even when other lenders cannot.
