Applying for a college student loan − How to come prepared

Anyone who has looked at tuition prices lately knows how expensive college can be, whether a student carries a full course load or not. Not only can they spend hundreds of dollars per course unit, but there’s also the added expense of books, student services, medical costs, and lab fees. More students are applying for a college student loan these days than ever before, to help cover such expenses.

Student loans are available to all students, but that doesn’t mean they’re easy to come by. Depending on the state and the college or university, expenses for a year’s course of study can range from hundreds to thousands of dollars, and the prices go up for State university locations. The decision to apply for a student loan may be the only reasonable option that many people have to fund their college education. Still, there are several things to consider before shopping for one.

First, take stock of your finances. Are you looking at the student loan to fund all of your school expenses or only a portion of them? When figuring the amount you’ll need, try to add in everything that involves school costs, even food, and extracurricular events. If you already have a job, great, but if you don’t, you need to sit down and figure out precisely what you need for class fees and right on down to paying for your school I.D. card. Many people forget such costs as student services, parking, and the medical insurance that is offered by most school campuses, so make a list and check it twice.

When it comes time to shop around for your loan, try local banks in your area first, especially if you have an account in a local branch. The good thing about student loans is that you don’t have to start paying them back until your schooling is finished but keep an eye on the interest rate that is attached to your loan repayment plan. Interest rates may vary depending on state and area. Still, you may be able to obtain a lower interest rate if you have already established some credit or banking history. If you have a job, so much, the better.

If your local bank branch turns you down, try other lenders, most especially student government loans. Many universities and colleges also offer student financing, so check their interest rates too. Knowledge is power, and that goes for education and finances.

Bad credit and overdue bills don’t look right, no matter if you’re nineteen or ninety. To increase your chances of not only obtaining a loan but also getting the amount you asked for, try to go in with a good payment history to back up your claim that you’ll be able to repay the loan when it becomes due. Earning a college degree is something that can’t be measured with money, but unfortunately, it’s what makes the world go round. When you obtain that loan, you should already have a tentative plan in place to start paying it back.

Online student loans − why, where, and how?

After graduating from high school, most of us have some confusion regarding our further education.

It is never an easy decision for attending Universities. Universities are expensive, and although you can take out a loan, it will take years to pay back even if you become incredibly successful with the career choices you make.

Today, large numbers of lenders are available in the market to offer you college loans. Due to increased competition, some lenders are offering attractive student loan packages even with various liberties in repayments like payment holidays. That’s why students are advised to research on their own before finalizing a deal.

You can use the internet to search for a private student loan as well as a government student loan.

Why apply online for student loans?

  1. Online student loans are affordable, with a low rate of interest.
  2. They are unsecured, so your home equity or retirement accounts are never at risk.
  3. They are straightforward and fast, require no government forms, and no deadline, and quick approval.
  4. Online student loans give you the chance to earn on your investments and savings.
  5. Require no paperwork.

How to apply online for student loans?

You can apply via a lender or can directly login to the website, and can apply for an online student loan. If you are a graduate, you will be asked to provide the following information:

  1. Information, name, and address of the applicant.
  2. Two personal references.
  3. The Balance and rate of interest of your current student loans.
  4. Your choice of online student loan payment plan.


Online student loans are easy, less time-consuming, need no paperwork, and offer you student loans with a competitive interest rate. However, it is recommended that you do thorough research online to choose the best deal. Do not postpone, and you can save a lot of money by getting a student loan.

Applying for a college loan for dummies

Interest rates are comparatively lower for dummies. Companies take specific care of student loan dummies. These type of loans are provided to them to pay tuition fees, library fees, campus fees, and also medical expenses. Government offers them specific grants and government student loans for all their expenses during education. 

If you have the plan to go to college and you want to apply for a student loan, then you have to spend a little time to research on your own.

It would help if you kept some pointers and guidelines in your mind, which will help you to choose the right loan option and assure you of the approval of your loan application:

  1. At the time of filling your application form, you should have the following documents: 
  2. A document containing information about your financial status. 
  3. Income proof certificate of your parents (might be asked if you are still living with your parents.)
  4. Consult your high school financial aid office for a better school loan option, as they are trained to help you. Collect every needed information from various sources.
  5. Prepare a budget, including all needed expenses.
  6. If you are an excellent scholar, then you are recommended to apply for a grant or government student loan before going to apply for a student loan, which will make your student life easy.
  7. Always try to grab every offer provided by the Student Loan Company. You can get the required information by visiting the lenders’ website.
  8. Do not avail offers like interest rate reductions, on-time payment’s interest rate reduction (always repay your student loan on time, as some companies offer you a 7. reduction of 1.5% if you repay them on time.)
  9. Autopay interest rate reduction: How you are going to repay your student loan? A wise selection can fetch you up to a .5% reduction.

All these tips seem to be very minute, but they will keep your financial position strong during your student life.

Basic principles of a loan

Understanding the basic principles behind a loan can save new borrowers a lot of stress and make the borrowing process more straightforward. This article will explore some of those loan basics.

A consumer loan is when a financial institution lends you money with the promise (from you) that you will repay the money. Most loan payments include both principal and interest.

The principle is the amount of money that you borrowed. Interest is the price paid for borrowing money; this is usually expressed as a percentage.

In an interest-only loan, the interest of the loan is paid off before the principal. It is essential to understand this because many mortgages are interest-only loans. Using this kind of loan allows the lender to make a faster profit on the loan, and in return, it also allows the lender to offer you lower interest rates.

Borrowers should understand that during the first years of an interest-only mortgage, the entire monthly payment goes toward interest. Because of this, there will be no decrease in the amount of the principle that was borrowed. In some cases, the initial interest-only payments are lower than the principal payments. This allows the borrower, who expects to earn more profit over time, to obtain a larger loan.

Variable Rates versus Fixed-Interest Rates

Aside from interest-only loans, you may see offers for loans that are based on either variable rates or fixed rates. Credit cards generally use either the variable or fixed rates systems when calculating the interest.

Variable-rate loans are based on the prime lending rate, and then some additional interest percentage is added to cover profits for the lender. Whenever the Federal Reserve raises interest rates, your bank will increase your interest as well. If the prime lending rate is low, variable rate loans and credit cards can be incredibly competitive with fixed-rate loans.

Fixed-rate loans and credit cards offer you guaranteed interest rates that do not fluctuate. You will know what your payments are every month based on the fixed-rate percentage of the loan that you took out. This offers consumers more emotional security because they do not have to worry about their monthly bill increasing suddenly.

All borrowers should understand that variable rates are different than teaser rates. Teaser rates are temporary and last only for a limited time, usually three to six months. Once that period is over, the rate will go up, and so will your monthly bill.

One of the most important principles behind a loan is establishing a good credit history. The fastest way to get a low credit rating is not to pay your monthly bill or to be habitually late in paying your bill. These activities are usually reported to the three big credit reporting agencies, and this information will stay on your credit history record for years to come. If you must take a loan out, make sure that you can make the monthly payments on time.

If you have any questions about your loan or the interest that is being charged, ask the credit person to explain it to you in detail. They are happy to do this. As a general rule, try to keep your non-mortgage debt payments below 10-15% of your monthly take-home pay.