All you need to know before going in for a student’s loan
August 09, 2010 // Posted by: cooldude // Category: Loans & Credit
A student’s loan is an excellent way of managing your higher studies, but you should know all about them before opting for them.
You first need an approximate measure of how much of money you would need for the entire period of your college. For the school you plan to attend, multiply your monthly budget by the number of months in total. Include the yearly expenditures on books and tuition. This gives you the rough estimate of your needs.
If you have saved for college, subtract your amount of savings from this estimate. Also, if you have managed to secure grants or scholarships, the amount you’d need would decrease further. The amount that remains should be your loan concern now.
For loans, your first choice should generally be federal loans – Stafford being an option, always. You should first opt for the subsidized, followed by the unsubsidized ones, if need be. The government is the rate-setting body here. If you are attending a private or medical school, your needs will not be covered even by these. It is only then that you should go for private lenders. However they should only be your last choice, because they charge high rates.