Decoding your future: College Loans 101

It is estimated that 50 percent of full-time undergrads in the United States are using federal loans every year to fuel their goals of having that much-desired college education. This amounts to a whopping $57 billion dollar in total of college loans. Awesome! Many of those who take out their college loans are those who are not born with Da Vinci’s genius which will earn them scholarships or grants. With today’s tightening budgets threatening to choke the very life out of many families out there, taking that college loan is a smart move.

Your education is something you need to invest in, even if the future may seem bleak for the moment. Why would anyone even say that the key to your good future lies in education.. if it ain’t true? Reality doesn’t only bite; it stings. The very cost of education is almost unattainable for many and for this, college loans are heroes sent to save the day.

How Does College Loans Work?

1. You normally get that financial aid letter in the summer, before you even start that senior year in high school, or before you even look for your top colleges and universities. Take these offers seriously and start working your way to be given that grant, scholarship, or other options open to you.

2. You may also check in with the schools of your choice or visit their websites to apply for a college loan or financial help. Meet your deadlines ( or be dead! ) and make sure you submit all papers needed. Expect to apply for a FAFSA ( Free Application for Federal Student Aid ). You can complete your FAFSA on January 1st of your senior year. Some colleges may also ask you to fill in other financial aid forms. The more, the merrier.

3. When all paperworks have been submitted, your application will be carefully reviewed for consideration. Normally, the admission letter and your financial aid award are sent in April. You will see which forms of help you qualify for and how much. It can be a combination of grant, college loans, or an offer to be a working student.

4. It is now your turn to evaluate the offer. You are not obliged to borrow the full amount you read. You can always compare the aid awards you have received. Know that the Perkins and Subsidized Stafford loans are the most popular choices among many. Always think of low interest rates, flexible terms, and no credit history requirements when it comes to the best college loans in town.

5. Try to look for private loans, or other ways of getting money for college. If you feel you’re good to go with the offer, then, go ahead and seal the deal. Make sure to pay your loans faster than the speed of light to avoid bad debts or forbearance. If this ever happens, you can always negotiate for better ways on how you can repay.

The early bird truly catches the worm when it comes to snagging that college loan. What are you waiting for? You really need to stick with your federal loans as much as possible so you won’t graduate with the world of debts on your shoulders. Read your fine print from top to bottom, page to page. Lastly, try aiming for your goals… but, Be Realistic!

READINGS:

http://www.collegeboard.com/student/pay/loan-center/425.html

http://www.collegeboard.com/student/pay/loan-center/441.html

http://www.usnews.com/education/paying-for-college/articles/2008/04/10/four-loan-tips.html

http://www.ehow.com/how-does_4569889_college-loan-work.html