Student Loans – Choosing the Right One

There are many different types of student loans to choose from but the secret is to make sure that you pick the best loan that is a ‘perfect fit’ for your situation and circumstances. You also have to consider the future implications that may affect you well after you have completed your studies.

This is because when you borrow money you have to start thinking ‘long term’, it is and investment in your future that will pay big dividends. You must choose your loan wisely so that you can minimize your exposure to long term debt.


The most popular loans are of course Federal ones and although they certainly have borrowing limits the term of these loans is usually a lot longer and another good point is that they have the lowest interest rates compared to all others. They also offer the ability to defer your payment and have much more relaxed borrowing criteria.


There are many other loan organizations that offer all sorts of incentives. Normally these are in the form of interest rate reductions, some offer to pay some of your borrowing fees or even no fees at all depending on you fulfilling certain criteria. Some companies can also offer you reductions on your loan balance if you make all your payments in a timely manner.


Private loans are another option that you should carefully consider although you should at first look at the savings to be had from the federal loan programs as a first resort.

The reason is that private loans should really just be considered as a way to help you subsidize your federal loan.

Terms of all these type of loans will always vary because everyone is an individual who has a unique history and also will be determined by your credit score and also the credit score of the co-borrower (if there is one).

Check First

One of the things to consider first of all is that you should enquire at your school or university and get their recommendations, they always have ‘their finger on the pulse’ so to speak and their information will be current.

As a rule of thumb, talk to your campus first, then do a web search and compare their notes with your notes and then make more notes to point out the advantages of each available loan.

“Students and parents should first check with the financial aid office on campus for recommendations on student loan providers,” says Martha Holler, spokesperson for Sallie Mae, the nation’s No. 1 paying-for-college company. “Be sure to borrow wisely. Every dollar that you do not borrow is one that does not have to be repaid.”

Other Means

Something more to take into consideration is to prepare yourself to receive future income. Always look around and search the net for other income opportunities. Not get-rich programs, but tried and true ways you can use to supplement your income with a passive online income.

I hope that this article about student loans has been of help and wish you every success with your study.

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