The cost of college is devastating to most families. According to The College Board for inner state residence to attend a 4 year college, the average tuition has been rising dramatically.
Luckily, parents and students can apply for financial assistance or student loans. The only problem is that there are so many different types of student loans available; the process of applying for the most relevant loan can be quite confusing.
Here are a few steps you may want to evaluate before determining the most appropriate student loan available for you:
Steps for Evaluating Student Loans
Step 1:
Before applying for a student loan, complete a FASA or (Free Application for Federal Student Aid). You can achieve a Financial Aid application online at fafsa.edu.gov, by printing out an application or filling out an application online. You may also, contact your Financial Aid Advisor at the school where you are enrolled.
Step 2:
Evaluate your credit stability. You may have to apply with a co- signer of more credit history.
Step 3:
Seek out loans that are relevant to your situation.
- Amount of Loan.
- Interest rates on loan.
- When does the loan need to be paid back.
- Make sure your college accept awards from the loan lender.
- Consult your college Financial Aid Advisor regarding loan and lender.
Step 4:
If you are not independent, your parents may be able to apply for a student loan for your benefit. Certain rules and criteria’s apply. Consult your lender and college for further information.
Step 5:
Narrow down your choices to those most relevant and speak with your Financial Aid Advisor in regards to determining the most appropriate loan for you.
Educate Yourself
There are several lenders competing daily for your business. Don’t be scammed and left with high interest rates and unreasonable terms. Educate yourself. Before finalizing your decision, evaluate the reputation of your chosen lender, evaluate the interest rates over the life of the loan and if needed consult a professional for any verbiage you may not understand.
Now you are on the right track and ready to make your decision.
