Student Loan 101: Get Money and Earn a Degree
If you’re like any other college student, you have to pay for college somehow. Many students seek government grants or ask friends and family for loans. These can be extremely effective means of financing an education and these options should be considered. However, a student loan may be the answer if you don’t have the savings or the means to get the money.
College can be expensive. Most parents at least try to help their children financially through at least part of their college experience. However, earning a degree from one of the prestigious universities can cost you over $30,000 just in tuition at the best schools. You could be one of the thousands of students who attend our great public schools and therefore go to school at a substantial discount. However, most people don’t have an extra $100,000 saved and therefore need to seriously consider getting student loans and applying for scholarships if they can.
A student loan can help you pay for tuition, books, and general living expenses. Student loans come in handy when you’re out of work and have an immediate bill that’s about to come due. Finding a grant or student loan shouldn’t be as hard as your classes are, so here are 3 valuable tips to consider when putting together your financial plan for your next year of college.
1) Find an established student loan provider. You don’t want an organization that flies at night and is simply interested in taking you for a ride and not providing you with the money you need to complete your education. Getting your student loan can be a lengthy process where the lender delays and delays and you end up waiting and waiting with more debt piling up. I have friends who have had their student loans delayed until the end of the semester due to paperwork errors! wow! A $5000 tuition bill doesn’t look good when it’s on your credit card statement.
2) When you get your student loan, look to pay off high-interest debt first. Guess what? Your money will do so much more for you when you only rack up debt at 5% per year than over 20% on your Visa bill! Credit card companies can be very aggressive marketers and you may end up paying that tuition bill many times over if you let it sit on your credit card. Always look to lower your highest monthly expenses if possible and this definitely includes credit card debt.
3) Compare prices. He’d be willing to bet that some banks will give you a better deal on a student loan than he thinks they will. Find out who has the best rate to get the best deal on your loan. Student loan payments can last a lifetime, and that extra 1% can add up to literally thousands of dollars over the years. I have friends who are 50 and still paying off their student loans. In the long run, it will pay off to make sure you find the best deal possible.
Student loans are as popular today as ever – find one and use it to your advantage.