You have been accepted into college and now you are wondering how to pay for it? There are several options that you can consider by following the steps listed below. They are designed to help you figure out how to pay for your college (also covering student loans)
First thing first, you have to fill out your Free Application for Federal Student Aid (FAFSA). Taking this first step will determine if you qualify for financial aid like grants, some scholarships work-study, and federal student loans. However, don’t fret if you’d be eligible or not as most people who fill this form often qualify for some financial aid no matter how small. And if you’re to stand a chance of finding yourself through college, this would be a better place to start.
Figure out how much you may need to borrow by weighing your college costs against your contributions, including any grants or scholarships. Some natural arithmetic will make your math teachers proud!
Let’s say your college of choice costs $30,000 a year, after factoring in tuition, housing, books lab fees, and a laptop. Now, let’s pretend that the money found in your family saving box for your college, your bowling scholarship, plus your federal grant all added, sums up to $10,000.
What that means is that you still have to make up to $20,000 to cover up for your total college cost. In cases like this, many families consider student loans a reliable option, which then takes us to the next step.
There are two categories of student loans you can consider. Federal and private loans. The government makes private lenders make federal loans and private loans. In some cases, families use both to cover the cost of college for their kids.
But before you go into getting one of these student loans, compare the options by looking at their interest rates, repayment options, and fees. Interest rates vary depending on the loan type. While federal loan rates are fixed, special loan rates can be fixed or variable, and are determined by your credit quality.
So, adding a co-signer like mom and dad may help lower your interest rate.
Also, repayment options for federal and private loans are different. While some providers require in-school payments, some don’t. So, take a close look at their repayment method and choose an option that makes sense for you.
Again, watch out for fees. Fees can be charged upfront or in repayment and they add to the total cost of a loan. So, if you don’t do proper research and chose wisely, you may end up paying more back.
Check for Other Benefits
Research for loans that do not charge fees ahead and those with fewer interest rates. For instance, the discover student loans have no fees and give you a cash reward for a 3.0 GPA or equivalent. Funding yourself throughout college is not an impossible task.
However, to do this, you first have to fill out your FAFSA, then be careful in the options of loans you take. In other words, go for loans like the Discover student loans that will ask for no fee and instead pay you for your excellent academic performance.