With the recent financial crunch, banking institutions that used to assist students with loans are now backing away from the market because it’s too complicated. With that being said, there are still plenty of banks out there that are offering college loans like Citi Bank and Chase. If you find yourself in a bind when it comes to college loans, follow these simple steps to help ease the process.
Look at your future earning potential
I’m sure if you’re looking for a college by now, you probably know what career track you’re going to want to go down. With a career comes a salary and it’s your duty to see what you’ll potentially be making in your first year. You’ll want to take this first year number and apply it to your loan. If your loan is going to be more than your first year salary, you’ll want to consider a cheaper college. Remember that local community college is a lot cheaper than a university.
Federal is the key
When applying for your college loan, make sure you go down the federal route first. The reason I say this is because a federal education is less expensive compared to an unsubsidized Stafford and plus loan. If you can get your hands on a federal loan, by all means, apply for it.
Private student loans – get a good co-signer
I think the title says it all on this one. When you’re applying for a private student loan, try and get someone with great credit. This will increase your chances or getting approved and on top of it, you’ll also receive a lower rate compared to if you applied by yourself or with someone that had shady credit. Keep in mind that it may be hard to find a co-signer because they would be liable if you couldn’t pay your bill off for some reason. Make sure you point out how this will help you and how responsible you can be.
Talk to the school
If you know what college you’re attending, every college has its own financial aid administrator. This person will be able to answer every and any question you may have. They will also be able to point you in the right direction when it comes to applying for the right loan. On top of all of that, they may also have advice on what loans have worked for students in the past
Student loans will always be around but when the financial market is rough, the loan market will be hit as well. Try and use these tips to your advantage because there are loans out there for everyone, you just have to do the searching to find the right one.