5 questions before applying for a student loan

With the rising costs of education student loans is now one of the best ways to make your college education because many students can not afford to pay for training. But before taking the plunge, and a student loan, the difficulties, the following questions about the type of student loan you need.

The type of student loans

There are two main types of student loans available now. Government loans for student loans government student loans and private place by the private sector are granted. There are advantages and disadvantages for each student loan, but interest rates are generally lower than the government's relatively easy to get approval because they do not take into consideration is your credit history.

For private student loans, the interest rate is higher, but more flexibility in the repayment of student loans.

Amount of student loan

In general, government loans for students is generally determined based on your skill level. For private student loans is the loan amount that can be varied and many of your credit history and repayment schedule.

It is recommended that only the amount of your loan money to education. To do this, you need to assess what is needed in the study. You must take into account costs such as housing, living expenses, school / school books and fees other expenses.

The duration of the student loans

The two government student loans and private loans that can last from 1 year to 20 years. For long-term loan, you must take into account the interest rate because you pay very little for all interest and principal amount of the end of the student loan.

You must determine how much you can pay each month after graduation and have a buffer of at least 3 to 6 months if you are unemployed.

Other loans

If you also have other loans, you should consider consolidation loans, loans against other students.

Without proper discipline and control, and repayment of other loans have an enormous financial pressure. It is best to all outstanding loans before removing a student loan. They preferred the interest on student loans, and because you are a better credit score.

Interest

The interest rate varies from lender to lender. The interest rates on government student loans are fixed and generally quite low. Private interest rates on student loans after the payment plan chosen.

If you want a fixed monthly payment, regardless of interest rates, it is preferable to obtain a government student loan with a fixed interest rate. This makes it easier to plan your financial budget.