Tips for Student Loan: Before and After
all of us are born with a silver spoon in our mouths, and so
we need to work. To earn a good living we need a good job, for
which a decent education is needed, which comes for a price,
and for price we need money again. So, the wheel turns full
circle and we are still at the same point -- money to invest
Education, as we all know, is getting costlier with every passing
day, which mean studying hard and getting selected in a top
educational institution is just not enough, as the next step
after selection involves submission of fee. To earn money one
needs money -- that's how it has always been. The only option
left is a student loan. Thankfully a thing like that exists.
But cautious one must be because the boon may turn into a bane
if due care is not taken. Student
loan interest rates are by nature not a very careful lot
when it comes to money management. They regularly go in for
what they do not need and overspend in careless indulgences.
Taking a loan is one thing but using it strictly for the purpose
is quite another. It requires quite a considerable degree of
self-restraint. It's very important to understand that loan
is not 'pocket money' because pocket money need not be paid,
but loan has to be pain with interest. One, therefore, needs
careful planning to make the best possible use of one's borrowed
sum of money. So, here are a few tips that might come in handy
when you go for a Student
loan interest rates and also during and after you have
drawn the loan.
1. Take a good look at all the loan offers in the market. Keep
your requirement in mind and do not borrow more than you need.
That smart thing of taking a little more and investing it in
stocks to earn a quick buck is an old idea, which has failed
a number of times with a number of people and have ruined a
number of dreams. Don't let that happen to you.
2. Do a careful comparative study of the options you have. Some
loans seem good on the surface but have hidden thorns. Look
out for them.
3. Go for a fixed loan rate so that the rates don't fluctuate
mid way to have you worried about the repayment even before
you are finished with the course that you took loan for in the
first place. This can really be big headache because in that
case you'll be up with a pen and a paper calculating how much
you'll have to pay instead of devoting that much time to studies.
4. While comparing two sets of student loans on offer student
loan interest rates must always be the first thing that you
consider and then compare the repayment format. The question
is whether the kind of occupation you are expecting after the
completion of your course be able to meet the repayment schedule
or not. If yes, then go ahead.
5. Student loan interest
rates are normally compound interest rates, which can make
amount of loan turn into a huge repayment amount. So take only
as much as you need, may be even lesser if possible. In other
words, if you can somehow earn a little, or borrow some from
your parents, you may consider doing it because taking it from
them would economically less burdensome unless, of course, it
is emotionally more cumbersome.
6. When you apply for a loan, you'll be getting a number of
mails at all times -- when you show your interest in a loan,
when you apply for it and during the term of loan. Do read all
the mails carefully because they contain some very serious information,
which might have an impact on the amount to be paid back. Also,
they might carry some useful information regarding new offers,
which you might find interesting. In any case, do not allow
yourself to be caught unawares while the company takes the plea
that they informed you already. If you don't understand anything
in the sent communication, do contact the financial institution
7. Keep saving every bit of communication, receipt and letter
that has anything to do with the loan you took so that you are
aware at all times as to what you agreed for. In case of any
dispute these small papers are of enormous help and can bail
you out of difficult situations quite instantly.
8. Money management and budgeting are also important so that
you spend carefully and your expenses do not run out of hand.
If you do a little bit of financial planning before hand, it
is quite possible to avoid any financial problems that you might
face even after having taken a loan. This would save a lot of
stress because it's seen that students tend to overspend and
face financial crunch despite their student loans.
9. Make sure that you do not overspend through extensive use
of your credit card.
10. In order to supplement your income you may also look for
a part time job. This would get you some extra income to meet
your expenses and let you do things that you might not be able
to do in your tight budget. However, resist the temptation of
using your loan money to buy things that are not necessary for
your studies or which you 'want' but do not 'need'.
11. Look for the tax benefits that you might derive out of your
loan. This can be very useful, for that's an additional benefit
you must not let go of.
For these tips to work one must understand that a student has
to have a no-fun life so long as he or she studies. That's the
key to success. The moment you let yourself and start 'enjoying',
you start eroding your chances of the kind of success you dreamt
of. Not that you cannot have fun to relax. That you can always
do, but do not exhaust yourself, physically or financially,
for that could make things much harder for you. So no discos,
no booze and no flings. Student
loan interest rates work best with this kind of mindset,
student loan interest rates notwithstanding.
1. federal student aid
Let us assume you have gotten all the grants and scholarships you can, but you still need money for your educati...