What are the best loans for college?
According to many reports, average student debt is on the rise. One reason is because many students are staying in college longer than before to get a higher degree education. Another reason is many of them aren’t looking for the right loans; a lot of college students just sign up for the loan as soon as they can get it, so they end up getting the left overs.
Best loans for college students
Low Interest Rates. You are a college student who making bare minimum to survive a livelihood while working your brains off by studying hard to graduate on time; you won’t be able to pay the interest rates while in school nor would you want high interest rates making your debt balance double the original principal amount. Your focus should be on the studies, not on wondering all the time how you would pay back all the student loans. If you get low interest loan, you will have a piece of mind to some extent.
Financial Aid. By now you should know what financial aid is – FAFSA. It’s an aid package for college students who can’t afford to pay for college. All the college students qualifies for it, but some get more money than others depending on your income and circumstances. It offer pell grants, state grants, work study programs for those who are willing to work while in school and loans from various loans. FAFSA loans comes in various forms, some are subsidized which doesn’t charge you any interest while in school and some are unsubsidized loans which adds interest rates while you are still in college. They are called Direct Loans and Stafford Loans; government pays for the interest rates you accumulate from private student loans. This is the best type of student loans for college. A nice thing is that you don’t have to pay back until you graduate or drop to less than half time enrollment for classes.
Loan from Employer. Some employers offer scholarships and grants for their employees who are taking college classes. Others offer, in addition to the ones mentioned, loans. A lot of employers won’t charge you any interest rates on it, and some will deduct your account balance as you keep working for them and accrue credits. A lot of companies help students pay off their loans when they get hired; it’s a good idea to ask about such benefits during the hiring process.
Credit Union. There are many Federal Credit Unions out there. A lot of them offer the best consumer loans as far as interest rates are concerned, far more competitive than private banks. Some of them you qualify after you join their membership; if the cost of membership is very low, it is good idea to find out their fees and charges.
Friends and Family members. It is understandable not all family friends can give you money for loans. But some do want to help during the time of need, and when asked during the right time for the right reason it strengthens the relationship further. Education is important to you, and your family and friends want the best for you. In the meantime, make sure you have a good plan to pay them back on time.