8 Tips for Taking Out Student Loans

1. Compare financial aid offers

After receiving financial assistance award letters, you'll have several options to make. Compare aid packages and read fine print.

2. Borrow only what you need

Consider a college's cost, your cost of living, your family's contribution, and your financial aid award to determine how much to borrow. You don't have to take the whole loan.

3. Consider working part-time

Part-time work will reduce your borrowing needs. You may qualify for college work-study.

4. Ask questions and follow instructions

Contact a financial assistance officer if you have questions concerning federal loans. Know the regulations for federal loan applications. Apply before the deadline; funds are limited.

5. Shop around for private loans

Ask your financial assistance officer for guidance if you need to borrow more. Compare interest rates, fees, and repayment alternatives before taking a private loan. You don't have to utilise the lenders your college recommends.

6. Be clear on what you're signing

How much will this loan cost in total? What will my monthly payments be? Is the interest rate fixed or variable? Can I get a lower interest rate? What fees do I have to pay?

7. Note private-loan credit requirements

Private lenders examine credit. If you have no credit history, you'll need a decent cosigner. Better cosigner credit means a better interest rate and other stipulations.

8. Consider making interest payments while in college

Need-based loans can be paid while in education. This reduces the overall amount you'll have to repay.

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