When you start to delve into the financial aspect of student loans, you will quickly become aware that there seem to be more questions than some people have answers for. Never fear, because you will eventually find those people that not only have the answers but that they have the right answers.
When you understand this then it will help to make your searching for the right loan a lot less stressful. You can also help to alleviate some of this stress by going to the people that will most probably have the answers you seek – the councilors at your educational institution.
They may not have ALL the answers but they can point you to the people that do.
Key Points to Consider:
1. Be careful of those companies that seem to promise you the world and tell you about a ‘special loan’ that can sidestep the necessary policies and procedures. If it sounds a bit like a scam then it probably is!
2. Something else to watch for is when the loan company is not forthcoming with the information about their rates and other important things you need to know. Some may also try and hide the actual term of the loan and might suggest an option that is good for them only. Make sure you read all of the fine print no matter how long it takes, remember you will have to live with this loan for several years, so a few extra minutes now will not be much of a burden and may save you a packet.
3. Some money lenders can actually sell your loan to a third party. This means that you may have to deal with an unknown individual and this could also have implications on your interest rate and term of the loan. If the lender is a good one, they will normally be forthcoming about all of the fine print concerning your loan. If you find that you have to ask more questions than they are telling you, then it should start some alarm bells ringing somewhere.
4. Try and make sure that you have a good credit score as this will affect not only the amount you can lend but also the interest rate. This may increase your costs over the long term.
As a rule of thumb, it is always better to consider dealing with those companies that have a great track record and have many great testimonials. I hope you have learned a few more ideas about the pitfalls of student loans and wish you every success.