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Arrange to Borrow Money For College.
After calculating how much money is needed to cover the cost of college
and miscellaneous expenses, decide if you and your parents need to
arrange for a student loan. Review the various types of student
loans; if you need to borrow money from a private lending
institution, research your college’s website or contact your
college financial aid officer to see if your college has a “preferred
lender list.” A list of the most popular lenders of Private
Education / Alternative Education loans is provided on the Loan Comparison
Chart listed above.
BEWARE: Private Education / Alternative Education loans usually
cost more than federal education loans. In addition, federal
education loans offer better forgiveness and repayment options; it
is recommended that you maximize your federal
loans before resorting to Private Education / Alternative Education loans.
Borrow only the amount of money you need. Over the next four
years you should borrow from only one lender so when it comes time
for repayment, there will only be one monthly payment to one lender.
For most loans, repayment begins six months after you graduate or
leave college. To calculate monthly payments for student loans,
use a student
loan calculator.
- Enter the loan balance (Loan Amount) you expect to have when
you graduate.
- Select an estimated average Interest Rate for your loans.
- Enter the Number of Months you will take for loan repayment. Students
usually choose a 10-year (120 month) repayment schedule. |
