Paying for college isn’t easy for most people. Savings, parental contributions, scholarships and grants are most likely not enough to cover all tuition and other costs associated with a college education.
Working while studying may help but will take a huge chunk of another precious resource that you should be allocating for schoolwork – your time.
Taking out a loan is the next option. The safest bet when you sign up for a loan is to avail of the government’s student loan program.
However, the loan program from the government has limits and the amount that they award you may not be enough. This may make you decide to apply for a loan from private lenders. Before you do, here are a few tips you need when looking for a non-government student loan:
Most, if not all private lenders and banks have a website. Before making an appointment, save time and effort by checking their sites and getting all the information you need about the loans they offer for students. Get information such as interest rates, repayment schemes, and discounts.
Knowing your candidates online is half the battle. You must literally shop around. This is the time to ask the banks or the lender to expound on the terms that you need further clarification. Take note of the way they treat you, as you will be spending a lot of time communicating with them for the duration of your loan.
If you find that the level of customer service is sub-par, go somewhere else. If they can’t treat a potential customer right, just imagine how they will be when you will be repaying your loan in the future.
Non-government loans vary widely. Costs and terms of the loans differ per lender. The time you spent doing your research will serve you well here when you negotiate for lower rates. What would seem like a small amount removed from your interest now could save you a lot in the future, as rates tend to rise.
Borrow only what you need. Also, bear in mind how much the average salary is in your future profession. There is no point going deep in debt for a career that will only pay you peanuts.