how to choose student loans

Student loans come in two types: federal and private.
To choose a student loan, you’ll first want to figure out how much you need to borrow, and then which options are available to you at what rates.
Compare your options and terms before choosing a loan, then choose the one with the most favorable terms and find out when you first payment is due.
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If you’re in need of funding for college, first look at any scholarships, grants, and family support available.

On its website, the US Department of Education recommends accepting “free money first (scholarships and grants), then earned money (work-study), then borrowed money (federal student loans).”

If scholarships, grants, and work study don’t cover your college costs, you’ll probably start looking at student loans to bridge the gap. If you need student loans for college, here’s a quick guide on how to choose one.

How to choose a student loan
1. Know how much you need

Before looking at your student loan options, you want to know how much money you need to borrow. Look at what you have in grants, scholarships, and family support. Then look at the tuition costs, projected class and book costs, housing, and any other costs you’ll be expected to cover. How much will you need total?

Subtract any funding you have from that total. The remainder is approximately what you will need to borrow in student loans.

2. Fill out the FAFSA

In order to get financial aid and student loan options, you must fill out the Free Application for Federal Student Aid (FAFSA®). The deadline for the FAFSA may vary by state, so be sure to check the deadline at StudentAid.gov. Your information will be sent to your school and you will receive a letter outlining if any loans are …read more

Source:: Business Insider

      

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