Loans For School: Finding The Right College Loans

If you recently won the Lottery or got really lucky in Las Vegas, this article is not for you. Most students, though, come to realize how important it is to find good loans for school to pay the expenses that were not covered by savings, grants or scholarships.Before we discuss some of the most appropriate loans for school, let's take a quick look at a few of your poorest options for covering your college education.Some Poor ChoicesFirst, something we all seem to both love and hate: credit cards. Admittedly, they are convenient to use and can bail you out of some tight situations. Realistically, you have to have them to function in our society. Have you ever tried buying something online, or renting a car without one? But seriously, for financing your tuition? Only consider them if you have a rock-solid plan to pay them back. Otherwise, credit cards can bury you with ridiculous interest rates, late charges and over limit fees. Another undesireable source of funds is check cashing sto
res. When you look at the cost of borrowing from them as an annualized rate, you won't believe your eyes! Seriously, if you use these often enough you may never recover. Look, if you don't have the money today, what makes you think you'll have it in 2 weeks? Forget these places!What about gambling? There are plenty of exciting games: poker, roulette, slot machines, dice, horse/dog races, and of course the lottery. The fact is, gambling is very profitable if you're a casino owner. For you, though, this is just a really bad habit to get into. It won't pay your tuition. Don't waste your time (and money).Another character in our rogue's gallery is the title loan, which requires you to sign over your car title as collateral. Expect to get just a fraction of your car's value, while paying a high rate of interest. All too often, the borrower is unable to keep up with the payments and ultimately loses the car. If you are willing to give up your car for much less than its value, why don't yo
u just sell the car and bank all the cash? At least you'll earn some interest instead of paying it.Some Better ChoicesAssuming you have made every reasonable effort to get scholarships and grants, you'll need to find the student loans you'll need to cover all the rest of your expenses. So let's have a look at some of the more affordable types of loans for school.We can place these into two categories: private student loans and government guaranteed loans. Private loans are funded by banks and other institutions. Each lender has their own rules, and usually these carry higher interest rates than the government loans. You might need a cosigner, and you probably will need a fairly high credit score to qualify.Government guaranteed loans for school generally offer lower rates, longer payback schedules, and the option to consolidate loans after graduation. A consolidation loan could lower the overall interest rate, too.Among the government loans are three categories: Stafford loans, Perk
ins loans, and Grad-PLUS loans. Grad-PLUS is short for Graduate student and Parent Loans for Undergraduate Students.These three have some various rules, but also share several similarities. At ExploreStudentLoans.com we discuss each of these loans in greater detail. One thing they do have in common, though: you must show a financial need to be eligible for the loan program. For all of these, you will need to submit a FAFSA (Free Application for Federal Student Aid) form to verify your eligibility.Should You Get a Scholarship or a Student Loan?Sorry- that was a trick question. The correct answer is, if possible, get both. A scholarship or grant is far better than a loan. You just might be surprised at how much you can get in grant money that you'll never have to repay. Loans for school can fill in the gaps when you can't get enough of the free money. Try to keep the loans to a minimum, though, and pay them off as quickly as possible to keep your interest expense to a minimum.And fina
lly, be cautious about using loans for school if your chosen career will begin at a relatively low pay grade. If that is the case, you may want to consider working part time to "pay as you go" for your expenses. Many students have graduated with a debt load that proved to be a heavy burden to carry for years. You can voluntarily practice frugality today, or find yourself forced to be frugal tomorrow. The choice is yours.

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