Know your money
Thursday, October 4th, 2007Now that we have covered the basics on how to obtain the most amount of financial aid, it’s time to bridge the gap to cover the rest of the tuition. If you aren’t able to rely on family contribution, it’s good to look into taking out private student loans.
I know, I know, Lately there has been a lot of negative press surrounding private student loan lenders on preferred lender lists with the university you may plan on attending. Don’t worry, a preferred lender list is just a list of suggestions of companies for you to choose from. Make sure that you are looking into multiple companies to ensure that you are getting the right loan for you. Here are some good pointers for you to look out for:
- Make sure your new loan does not carry a pre payment penalty (a penalty that the lender charges if you pay your loan off early).
- Only borrow what you need for school expenses. It’s hard to turn down money, but remember this is a loan and you will have to pay every bit of it back plus interest.
- Know if you are taking out an adjustable or a fixed rate loan. There are advantages to each, but make sure you are reading the loan terms.
- Ask your lender if you are eligible for special borrower benefits such as a deferment, grace periods, or rate reduction incentives.
- Private student loans are a great way to help you afford the costs of college, just make sure you are educated on how you go about obtaining the financing.
