Everyone knows how hard paying for college or university can be in this day and age. In a world where all prices are on an exponential increase, it can be hard for parents to provide their children with quality education. While some parents keep a fund for their child’s further education separately since the day they are born, others tend to go with the flow, which could restrict them from paying at the right time. Whatever the case may be, it is crucial to know that getting quality education is one of the basic rights of every human being.
The good news is that there is light at the end of the tunnel. Despite what it may seem like, it is possible for you to provide your child with the education he or she deserves by resorting to student loans. Bonsai Finance is giving students the golden opportunity of studying at their dream college or university with student loans. However, keep in mind, everything comes at a cost, which is why when resorting to student loans, it is important to borrow carefully.
You must know that the more money you are borrowing, the harder it will be to repay in the future. Even though student loans are the only hope for many students, it is important for you to restrict yourself a little. A student loan debt can become the biggest burden on your future. In order to make sure that does not happen, here is what you can do:
- Try applying for scholarships so the amount of money you are borrowing can be lessened.
- Try getting a job, even if it is part time because that will help paying for the loan. Moreover, this way you will be able gain experience early on which most of your companions will not even have allowing you to make the right decisions for your future.
- Look for universities that provide in-state education or that are less expensive. Once you graduate, the school you go to will not matter.
- Try making clever financial decisions by cutting the costs.
Whenever you get a fund for your student loan, you need to know that you will have to pay it back in the future with an interest rate attached to it. So, the earlier you pay it back, the better it will be for you.
What to Know
- Student loans are included in financial aid packages. Commonly, people believe that only scholarships and grants are considered financial aid, but you need to know that student loans are in the same category. They allow you to pay for university fees even though you have to pay it back after you graduate. After receiving financial aid, you must look into everything that is provided to you and research it. Not everything will be scholarships or grants.
- Two types of federal student loans. Federal student loans come in two categories; subsidized and unsubsidized. Subsidized loans are for the students that already have financial aid and the federal government is covers the interest while you are in university. Unsubsidized loans are for all students. What’s important to remember here, however, is that students of both loan categories have to pay these loans with interest.
- If the federal student loan is not enough, check out the private ones. Although, federal student loans are given in financial aid packages, sometimes they are not enough to pay for all the expenses. In order to get a private student loan, you need to get in contact with your university’s financial aid office and talk to them about the preferred lender list.
- You do not have to pay off the student loan debt right after graduating. A plus point about these student loans is that you do not have to pay off the bill right after you graduate. You will get a 6 month grace period to find a job so you can begin paying off the debt every month.
- Student loan forgiveness is a thing. If you are meeting a few requirements, your student loans can be forgiven. To gain student loan forgiveness, you must have a job in a public sector that is under government authorities, and other public services like teaching, military service, law enforcements, etc.
- Despite bankruptcy, student loans will not be dissolved. Almost all debts can be dissolved during bankruptcy except student loans. Student loans will stay right by your side until you do not pay them off. It is important to be aware of the fact that if you stop paying your student loans, the federal government will begin to take your wage from work so the debt can be paid. This is why the best thing to do is pay this debt off at the right time.
- Try not to overdo the borrowing. One thing to keep in mind when dealing with student loans is that you should not borrow more than your starting salary per year. Check the estimated salary of your potential career and set a budget for yourself so you do not borrow too much. If you are borrowing more than you are making, it will take you multiple years to pay off the debt. These loans should not be taken lightly, and they should be paid off as soon as possible.
Qualifications for a Federal Student Loan
- Must be an eligible noncitizen or a citizen
- Must have a Social Security Number
- Must have a high school diploma or something equivalent like a homeschooling program certificate or a GED
- Males need to be registered with selective services
- Maintain a 2.0 or higher GPA
- Apply an get accepted to eligible schools
- Fill out the form for Free Application for Federal Student Aid
- Other federal financial aids should be in good standing
- Have a part-time or full-time job
This is what you must know before applying for student loans. Now that you are aware, make wise decisions, and most of all, enjoy college!