College Student Loan Repayment

Copyright (c) 2012 Alex Yew

One of the most important things that a parent can save for in a young child’s life is higher education. Because of the rising cost of further education it’s definitely important to start saving early. Sometimes going to college isn’t an option for many children and adults due to the overall expense. There are many factors that will determine how much you can expect to pay for a college education but if you’re not able to save now you could expect to be paying a loan off after you graduate!

Some individuals will qualify for scholarships and federally funded grants that could save them all on their tuition or part of their tuition during their higher education. This is great if you’re struggling to find a way to pay for your education, however, getting a scholarship or a grant is something that you will have to work very hard for and possibly compete for against others in your age group or area.

When shopping around for a student loan there are some pretty important things to keep in mind. One is you don’t want to sign your life away. You should find a college that suits your needs and, of course, your budget. Without a full scholarship it could be near impossible to afford if you’re tight on money since lab fees, book fees and even campus and tuition could run you a pretty penny.

If you feel that one college may be out of the running then you should consider options such as living off of campus where you pay rent monthly versus high fees for dorm living. You could also consider an option like online schooling or even an in-state college or university versus out-of-state. This could help you repay the loan a bit easier since those options are usually a bit less expensive over the course of your college education.

There used to be two types of student loans that you could get; private loans and federally funded loans but since 2009 you can only get federally funded loans. Before you even think about applying for a student loan you should decide on a few colleges first to get a general idea of how much money you are investing in your future. If you plan on living on campus you should factor in the cost of dorm living as it can also add immensely to your overall repayment plan.

Some student loan repayments can be made after you graduate from college. That means that while you’re in college you will not be required to make any repayments on the outstanding balance, however, when you graduate your payment plan will start. The other type of student loan may require you to make payments while still attending college. This could either be a good thing or a bad thing. If you are in college it could be difficult to focus on making payments while focusing on schooling. However, it does allow you to pay the loan off a bit quicker than waiting two, four or even six to eight years to pay it off or until you graduate with a degree.

If you’re not sure about the type of repayment plan that is offered with your student loan you should make sure to ask these questions prior to signing on the dotted line. Make sure that you know exactly what you’re signing, how much your repayment is in total and how much your repayment loan is going to be once it’s all said and done.

If you enlist the help of a financial aid advisor at your college of choice then they are skilled in this area and should be able to provide you with the necessary information regarding the loan and the repayment. If you do not feel that you’re getting the information that you need or require then you should speak up and ask or you shouldn’t sign on the dotted line.

Remember all individuals student loan repayments are going to be different depending on many factors including what college you attend, how long you attend, how many classes your degree will require and whether or you’re in-state or out-of-state or living in the dorms on campus. If you would like to know more information before speaking to an advisor, you can use an online repayment calculator to give you a rough estimate of your monthly payments.