Did you know that the total amount provided for student loans in 2017 was 105.5 billion dollars?
Need to apply for a student loan but not sure what to look for when applying? Not to worry! We can help. In this article, we’re going to look at the factors that determine the best student loan.
Want to learn more? Keep reading to find out!
Best Student Loan
There are many ways to determine if a loan is for you or not. The interest rate, fees, repayment terms, and releasing a cosigner are essential. Let’s look at some different federal loans available first.
Various Federal Loans
These loans have a fixed interest rate. They’re lower than private loans, most of the time. All except for PLUS loans have a limited amount you can borrow each year.
Direct subsidized loans are suitable for students in financial need. Interest isn’t charged until after school. It’s also not charged during deferment periods.
Direct unsubsidized loans aren’t based on financial need. Your school decides how much you’re allowed to borrow. Interest’s charged and added to the principal amount. You’re able to defer payments until graduation.
Federal Perkins loans have lower interest rates. They’re intended for students with a great financial need. Some schools don’t offer them. You have a grace period after you leave school before you need to pay it back.
Direct PLUS loans are credit-based, unsubsidized loans for professional or students. They’re available for parents of dependent undergraduates who need more money. There isn’t a borrowing limit. But the interest rate is higher.
Even while in school you can try and get your finances in order. Check out our tips!
Factors to Consider with Student Loan Lenders
The interest rate is something essential to factor in. Private lenders offer either fixed or variable-rate student loans. The type of rate you receive depends on the current market, your co-signer, and credit.
Interest rate reduction with autopay helps lower your interest rate. Most private student lenders allow you to do this. The discount ranges from 0.25 to 0.50 percent.
Sometimes you’re in a situation where you want to release a co-signer. If you meet the income and credit requirements, pay monthly, you could release a co-signer.
Most lenders offer various types of repayment plans. There is interest-only payments and full interest and principal payments.
There even are options to defer payments until graduated. A full deferment is a solid option for students who want to focus on school.
Check out these education foundation scholarships. Scholarships are a wonderful way to aid the cost of your education.
Want to Learn More?
We hope you found this article on finding your best student loan helpful. After considering the types of loans, think about interest rates and when you have to pay it back.
Want to learn more? Check out our tips on the best places to study abroad.