Not every college student is capable of financing his tertiary education. Each year, thousands of parents and college students themselves apply for a student loan. In fact, many complete their college and enter the working force still with remaining loan debt.
Data from the American Student Assistance (ASA) showed that of the nearly 20 million Americans that attend college every year, 60 percent or almost 12 million borrow annually to help cover the cost of their education. Currently, it is estimated that 37 million student loan borrowers still have outstanding loans.
In the U.S., there are various types of student loans available with each having its own specific rules and features. These include the Stafford, Perkins and PLUS loans. Learning about each of them can help you find the best one that fits your needs.
Knowing your credit score and ensuring that all details are accurate is another vital step before the application process. The credit score is an important determining factor in the type and amount of loan a student can avail of although there are certain loans that do not require this.
In addition to your credit score, it is a good idea to determine the terms and amount of your loan payments. This will guide you in planning for your job after graduation and estimating if you can afford the monthly payments.
In line with this, you need to do a little research about college majors that have a high earning potential after you graduate. This will enable you to pay your loans in a timely manner without going into debt moving forward.
Make sure that you borrow an amount only that you can afford to pay. It’s a common occurrence that many college students graduate still facing a huge amount of debt. To avoid this, it would be best to find other sources of income even while you’re studying. You can apply for a part-time job or perhaps enter the military for one term and use your bonus to pay for college.
In addition to availing of student loans, parents also have an option of applying for a payday loan. Those employed in a regular job can avail of this to help in their finances. They can use it not only for the education needs of their children but even for their basic needs. The important thing to keep in mind is to always choose a reputable firm and one that offers a reasonable interest rate.
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