Handling Your Student Loans Wisely

Student loans are available to everyone who is wanting to receive higher education for a more fulfilling career. But if you don’t know what you’re getting into, the idea of pulling out a student loan can seem a bit frightening. Don’t worry, the kind advisors at College Funding of Tampa Bay are here to teach you how to handle your student loans!

Look Into FAFSA First

Many prospective students skip this step and go straight to signing up for a loan because they assume that they won’t qualify for free money. Completing your FAFSA doesn’t cost a dime, it won’t take up much of your day, and there’s always a possibility you’ll receive a Pell grant with no repayment required. It’s also entirely possible to have your entire tuition paid just by filling out the form, so you should always try this first!

The Difference Between Federal and Private Loans

If you filled out your FAFSA and didn’t receive enough aid to cover your schooling costs, that’s when you should start considering taking out a loan. When it comes to college students, you have the choice between federal or private loans. But what’s the difference? Before you sign up for the first company to make you an offer, you should look at the pros and cons of each. Many students end up choosing federal student loans because they typically come with more benefits. Student federal loans are usually more forgiving, offer more flexible payment plans, and are able to be easily consolidated to save you money. In this case, it also helps to learn the difference between consolidation and refinancing.

Learn the Intricacies of Having a Loan

When taking out a loan, there are a bunch of factors to consider. Credit scores, interest, payment plans, qualifications, it can all be a bit overwhelming for someone who’s new to financing. Most federal student loans are lenient because they understand that students who need financial help are likely not in the best situation since they are just starting out in the world. Depending on the amount and terms of the loan, it’s very possible for students to need a cosigner for better approval odds. This is especially true for private loans which are a bit stricter in this aspect. And speaking of private loans, there are certain things to watch out for such as hidden fees and varying deals.

Saving Costs on a Loan

When most people take out a loan, they usually only pay the minimum payment until the amount is paid in full. If your loan has an interest rate, you will save more in the long run by paying it off early. Some tips to help you become debt-free sooner than later include:

• Only accepting what you absolutely need rather than going for the maximum amount that you qualify for when taking out a loan
• Making extra or larger payments whenever possible
• Setting a budget for your daily expenses and using the leftover cash to make extra payments

Consult Tampa Bay Financial Experts

If you need help deciding whether or not you should take out a student loan, what kind of loan to apply for, or ways to pay off your loan, College Funding of Tampa Bay can help you every step of the way! Give our friendly advisors a call today at (813) 755-6834 for a free consultation.