| There you are! Finally going out from your parents' | | | | depending on whether the borrower is in school or in |
| home and ready to start your collage life!! But now you | | | | repayment. |
| are finally independent, you realize that you need | | | | 3- INTEREST RATE: The interest rates attached to |
| money to everything... money you don't have. Students | | | | your student loans are as important as the loans |
| loans are many people first borrowing experience. But | | | | themselves. As interest accrues, or is added to the |
| as your financial live is beginning, you need to learn to | | | | loan amount, so does the value of the loans, the |
| be an intelligent borrower. | | | | amount you must repay. Loans come packaged with |
| On my professional opinion, you have to compare and | | | | an interest rate, fixed or variable. You need to know |
| be aware of many things before signing a student | | | | for certain if the loan interest are fixed or variable. If |
| loan, but the most important are: Loan balance, APR, | | | | variable what is the maximum? When will interest |
| Interest rate, Disbursement Fee, repayment fee, | | | | begin accruing? When will I be required to pay it |
| repayment term. | | | | Applying with a co-signer can reduce your interest |
| 1- LOAN BALANCE: This is simply how much money | | | | rate. |
| are you going to need. And it sounds really simple, but | | | | 4- DISBURSEMENT FEE: It is made to the guarantee |
| can be tricky. Calculate as accurate as you can your | | | | agency in order to cover the costs of insuring the loan, |
| college costs. There are many students that | | | | though some agencies will waive this fee. |
| miscalculate the amount they need and have to face | | | | 5- REPAYMENT TERM:The sooner you retrieve the |
| several interest fees that turn out to be almost | | | | money, the lowest interests you will pay! So many |
| impossible to pay! Include expenses such as tuition, | | | | student mistakenly believe that they have to make the |
| housing, books, personal expenses and all fees. Most | | | | loan short... REMEMBER! If you plan to repay it too |
| student loans start to be settled about six month after | | | | soon, you will have to apply to a new loan or ask for a |
| your graduation, so you also have to calculate that at | | | | repayment fee..and it can be twice difficult... so, think it |
| the moment of retribution you will be having other | | | | carefully. |
| expenses such as rent and food... besides, you will | | | | 6- REPAYMENT FEE: Most lenders will allow you to |
| want to save some money too, not to expend all of it | | | | adjust repayment terms to suit individual needs and |
| in just living and loan payments. It's highly | | | | circumstances. Of course, you will have to pay an |
| recommended not to pay more than a 10% of your | | | | extra fee that will change your repayment plan. Think |
| monthly incoming. This way you can cover all your | | | | carefully if it is better for you to extend the term of |
| expenses and pay at time, avoiding delays in | | | | the repayment or to apply to a new loan. |
| payments and the consequences of that. | | | | Anyway, applying to loans is free and you need to |
| 2- APR (Annual Percentage Rate ) This is a variable | | | | inform very well before deciding. Some do not ask for |
| rate and will increase if the applicable index (one-month | | | | fear of looking stupid and others are just stupid and do |
| LIBOR rate) increases. Lenders are required to provide | | | | not ask!! Don't hesitate to make all the question you |
| APR information to prospective borrowers. Also, | | | | need and ask for any advice to other students or |
| private loan borrowers should be aware that the | | | | even teachers. You will have to take responsibility for |
| formula used to calculate APR often will change | | | | your decision, so you need to be well informed! |