If you are looking into student loans, make sure to meet with the financial adviser at your school to review your options in detail. Just remember the more money you borrow now, the higher your monthly loan payments will be after you graduate.
After comparing your options, choose the student loan that best suits your needs.
Private Loans: The most common private student loans are offered by banks. Their interest rates are often variable, which means your interest rates and payments could go up or down over time. Private loans might not be as flexible when it comes to reducing or postponing payments. For more information on private loans, visit your local bank.
You will want to look into both federal loans and private loans carefully before making a decision.
Advantages of a federal student loan: may be subsidized, may have a more flexible payment plan, and more likely to have a low interest rate. However, you may not be able to borrow the full amount needed, may not qualify, and if you do not pay it back, a portion of your wages and tax refunds could be taken by the government.
Advantages of a private loan: you can borrow larger amounts and if you have a good credit score, you may be able to find low interest rates. However, you may need a co-signer and payment options are less flexible.
When you are looking at different schools, don't forget to compare the costs, including: tuition, living expenses, school supplies, and, if it's far from home, travel expenses.The little things will add up and can make a considerable difference in your financial situation. Before getting started, talk to your financial adviser about applying for grants and scholarships.
