Paying for education is not so easy task. I know that some families and employers cover the costs. But not everybody is so fortunate. If needed to come up with more money, then I will suggest that there is a need to know how to get a student loan. In this page I will cover the options available to you, and the need that is important to know before you borrow.
Try to Not Borrow
Before getting into the method of how to get student loans, there’s something important that is trying not to borrow anything.
It’s easy to get money now. But it is difficult to pay off later. An education is an investment. It is often well worth it to borrow money to fund your education. However, I think we can minimize the debt burden by:
Working part-time (even if it means taking an extra semester or two)
Finding employers that pay for education
Going to school at less expensive institutions
Hunting for grants and scholarships
Know Your Options
There are several options when borrowing for education. Make sure to consider all of them. Then choose the one that fits you the best. Be sure to consider:
Loans offered under government programs (generally the best option)
Private student loans (typically used after borrowed the maximum from government programs)
In addition to loans designed specifically for education funding, might use:
Loans from family members
Home equity loans.
Peer to peer loans.
Unsecured “signature” or personal loans
Start with Government Loans
Student loans from government sources are the best. These loans will generally have lower interest rates. Some of the interest may be paid while you are in school. There are several other benefits to government-backed loans.
The main drawback of government programs is that they may not cover all of your expenses. There are limits on how much you can borrow. If you need more, you will have to find it somewhere else.
How to Get Federal Student Loans
Visit the school’s financial aid office to get a student loan as part of a government program. Let them know that you’d like to borrow. They will tell what necessary steps to take. We will have to fill out a FAFSA form. This will determine what type of aid we are eligible for. After your FAFSA is processed, we will get a financial aid offer from the school. If decided to accept the funds, we will need to complete entrance counseling, and sign a loan agreement.
You should be able to qualify for certain government loan programs regardless of the income or credit score. However, we will have to qualify for loans with private lenders. If we need more money means we will need debt to income ratios and credit scores. If we can’t get a loan on your own, then we may need the help of a co-signer. Another person can apply for the loan with you. But he or she has to promise to repay the loan if you fail to do so.