So, you may be wondering how to choose student loans. This process should start with some research. Don't panic! Remember most loan payments won't start until 6 months after you've graduated. Some of them can be deferred, especially if you're going to be continuing school. Of course, there's also loan forgiveness available for some occupations. Nevertheless, you shouldn't simply close your eyes and hope to wish your debt away.
Federal loans are going to be your safest option. Their interest rates don't change over the course of time and they aren't affected by your credit score either. Furthermore, these loans come with some protection for you, just in case you find yourself unemployed after you graduate from college.
There are 2 types of federal loans:
1. Subsidized or Perkins loans are your best option if you qualify for them. Herein the government pays your interest while you're in college. The interest rate is typically fixed at between 5 and 7 percent.
2. Unsubsidized loans are available to anyone but the interest on these loans is accrued while you're attending college. You can defer their payments for 6 months after you graduate. The interest rate is similar to that of subsidized loans.
Private loans are riskier. Their interest rates aren't fixed, which means that they could change at any time. These loans also require a credit check so you'll probably need a cosigner who has good credit. Typically, there aren't any borrower protections with them, so you could end up paying a lot more than what you originally borrowed.
There are also school loans but you need to be cautious of them because many of them are simply private loans in disguise. Even though your school probably has a "preferred" lender, you don't have to use them. You can shop around for great deals on loans. When you do so, make sure that you also get a full explanation of terms prior to committing to a lender. Typically, they'll try to out-bid one another for your commitment so you should tell them about the rates that you were offered by another lender.
As with any contract, make sure to read everything. Loan cancellation processes are very difficult and time consuming. Make sure you know what you're in for before signing anything. Get all of your questions answered too.
Never wait to make any payments. If you work part-time while attending school, make some small payments. This will help cut back on how much you ultimately owe.
College should be a great time of studying, having new experiences and making new friends. Don't waste your time worrying about loans. Research them ahead of time so that you're sure to find the right one.
South Western Oklahoma State University is a leading university based in Weatherford, OK, and offers quality degrees in nursing and Pharmacy. For more information, feel free to visit: http://www.swosu.edu/