There are so many bills an average student incurred during their study in school. Not having financial capabilities to pay these bills can handicap one’sperformance and thereby affect one’s dream.
However, in most societies loans are available to students who are financially handicapped. These loans are provided by government or financial institutions.
Below are 5 things every student should know before taking a student loan:
1. There are two types of federal loans
The federal government makes loans accessible for students who are financially handicapped. However, there are two categories of federal loans: subsidized and unsubsidized.Subsidized loans are types of loans kept for a particular set of students who are financially handicapped, the federal government pays the interest of these loans while the student is in school. An unsubsidized loan is a category of the federal Government loan that is available to every student regardless of their financial status. However, the students pay all the interest on the loan they applied. To be eligible to apply for these loans, the students and their parents must meet the federal government credit scores.
2. Loans payments aren’t due immediately after graduating
Most societies offer graduates that must have used the student loans a grace period of 6 months during which they don’t have to worry about the credit outlay. This gives the graduates enough time to find employment. Most times, your borrower finds a healthy repayment plan that can work for you during your years or months of repayment.
3. Do not borrow more than you can handle in the future
Do not borrow more than you can handle in the future, you can make research through review and research sites on how much potential careers earn annually. This will give you insight and guidelines on how much to apply for. Borrowing more than you can handle can be disastrous in the future. It might mess with your plans for a couple of years. Therefore get to know your type of loans and potential career salary to plan for borrowing and repayment.
4. If federal student loans do not cover the cost, look into private loans
Some students might be awarded federal loans, but sometimes the federal government might not cover the whole cost for all your years in school. Of course, you won’t like creating a GoFundMe account in your final year due to a financial crisis. Another option available is private loans. Some private lenders provide loan opportunities for students, you can check your school financial aid office for credible lenders around your region.
5. Student loan forgiveness
Student loans can be forgiven, especially for those who will find themselves serving the federal government in capacities like the military, public service, teaching,and humanitarian services.
Student loans can help you achieve dreams you never thought you could with your financial status. But before taking on a loan research tomake better plans for borrowing and repayment.