Everything you need to know about financing a college education with student loans
(StatePoint) While the majority of parents today highly value higher education, that doesn’t always dampen their sticker shock when it comes to college-related costs.
A new survey from College Ave reveals that 91% of parents think a college degree is important for their child’s future. At the same time, 74% of parents found the cost of university education surprisingly high. From getting their children involved – 46% of parents strongly believe their children should contribute financially to their education – to borrowing – 16% currently or considering taking out private student loans – many families are exploring a range of financing options college studies.
“If you’re using private student loans to fund your college education, it’s important to create a budget and do your research,” says Angela Colatriano, director of marketing at College Ave Student Loans. “Having a plan can help you avoid surprises down the line and reduce the overall cost of your loan.”
Here’s what you need to know:
First of all
Before even considering private student loans, Colatriano notes that applying for scholarships and completing the Free Application for Federal Student Aid on FAFSA.gov is essential to determine your child’s eligibility for certain scholarships, grants, and scholarships. , work-study and federal student loans. . You should also explore budget housing options and ways to spend less on school supplies, such as buying used textbooks.
If federal student loans don’t cover your remaining fees, shop around for the right private student loan, advises Colatriano. Here are four factors to consider when comparing loan options:
- Competitive rates: Getting a lower interest rate can help you get lower monthly payments and pay less interest over the life of your loan. To get an idea of the overall cost of the loan and your monthly payments, use the student loan calculator on CollegeAve.com.
- Flexible loan terms: Find a student loan with a variety of repayment options. Some lenders, like College Ave, allow you to choose your loan repayment term and start making payments immediately or defer them until after you graduate. The important thing is to choose a loan whose conditions correspond to your budget.
- Costs: Private student loans usually have no origination fees, but you should still take the time to check. You should also ensure that your loans do not carry any prepayment penalties.
- Positive business reviews: Only work with an honest and reputable company. Check Better Business Bureau accreditation and read reviews to learn more about customer experiences and see customer ratings of each business.
Take out a loan
Wondering how much to borrow? “A good rule of thumb is to figure out what your student’s expected annual salary will be after graduation, and then try to keep your total loan amount below that amount,” says Colatriano. “For parents with strong credit who want to take on the debt on their own, parent loans may be a good choice.”
For competitive rates, flexible loan terms and excellent customer service, consult the industry experts with College Ave Student Loans. The lender offers private student loans and parent loans, and its simple 3-minute request can quickly determine your eligibility, helping your family breathe easy from day one of the process.
To learn more and for additional resources, visit collegeave.com.
At the end of the line ? Being a strategic borrower and finding a simple loan experience can help your family take care of what matters most: preparing for a bright future.