Tips For Getting Your First Student Loan
Getting a student loan can be an intimidating process. This is more than likely your first time taking out any kind of substantial loan. But if you take a few preliminary steps, you can make sure you are getting the best rate possible, and not messing up your financial future.
Step 1: Figure Out How Much You Need
If you just want to take out a loan for tuition, then this is an easy step. However, most loans will also cover books and living expenses. Just remember that unless you are getting federal aid (see step 3 below) you are going to be paying interest on this money. You may be better off getting a part-time job, if your schedule will allow it. Otherwise, figure out the sum of all your expenses and tuition.
Step 2: Find Co-Signers and References
Co-Signers are absolutely necessary for getting good rates on loans, as they can usually cut your rates in half. Usually, you can get your parents or other relatives to do this for you. Relatives and former employers and teachers can also make good references. Get all of the information (name, address, phone, e-mail) of these people and their permission. Getting this information ahead of time will save you a lot of time when filling out forms.
Step 3: Fill out a FAFSA Form
FAFSA is subsidized federal loan money, which usually comes with little to no interest. You should always be filling these forms out every year just to see if you qualify. You can apply online here: http://www.fafsa.ed.gov/
Step 4: Do your research
Sites like SimpleTuition are a good way to start finding companies to take out loans through. Compare all your different options, and figure out what company best suits your needs at the lowest interest rate.
