| College and student loans can be tricky things to | | | | choosing the type of loan you want. |
| manage during the whole college application process | | | | The two main types of loans that you will find are |
| and general college experience. In today's economy, | | | | federal loans and private loans. Within the federal |
| people are tightening their belts more and more. | | | | category, there are three main types of loans: |
| Many colleges these days are extremely expensive | | | | Stafford loans, Plus loans, and Perkins loans. |
| and virtually impossible for many people to afford on | | | | Federal Plus Loans are ones that apply most to |
| their own. While scholarships, grants, and financial aid | | | | parents who have full-time or part-time college |
| are all viable options, not all students are able to | | | | students. The loan is awarded based on credit history |
| attain them. | | | | and the cost of the college/university. The interest |
| In this case, many students are forced to consider | | | | rate is generally low; however the repayment of the |
| taking out student loans. There are several important | | | | loan starts rather hastily (60-90 days after student |
| questions to ask yourself before deciding if applying | | | | graduates). |
| for school loans is the right thing for you. | | | | Generally, federal loans can be obtained through |
| Can I Afford To Take Out A Loan? | | | | banks, credit unions, or directly from the government. |
| This is not a straightforward question since there are | | | | Look into these three types of federal loans first. If |
| many factors that can affect the answer. You must | | | | you have little success then I would suggest looking |
| look at the amount of your loan(s), your interest | | | | for private loans. Private lenders can be a little trickier |
| rate, and the amount of time you will have to pay it | | | | so make sure that you thoroughly understand |
| back. Other things to consider when answering this | | | | everything about the private loan you're looking into |
| question are whether you or your family will have | | | | before you sign anything. |
| any source of constant income that can be used | | | | Is It Worth It for Me to Take Out A Loan? |
| towards paying off your loans. | | | | You must consider your opportunity cost. What are |
| What Kind of Loan is Right for Me? | | | | you studying and what degree will obtain by taking |
| There are several kinds of loans that are offered and | | | | out this loan? Will the potential jobs you can get |
| it is important to tailor your loan to find your needs. | | | | from attending school be worth the debt you get in |
| How much time will you need to repay the loan? Are | | | | from taking out these loans? |
| you looking for an extremely low interest rate even | | | | If you can answer this question and confidently say |
| if it means you have to pay the loan back faster? Do | | | | that it will be worth it, then maybe a student loan is |
| you want a loan that is need based or non-need | | | | the right thing for you. |
| based? These are all things to consider when | | | | |