STUDENT LOANS SHOULDN’T BE YOUR FIRST CHOICE
In no uncertain terms, student loans shouldn’t be your child’s first stop when it comes to paying for college. Free money, like grants and scholarships, are always preferable to loans.
Grants are often awarded based on your student’s FAFSA, and they are given out on a first-come, first-serve basis to those who qualify. So, make sure they have theirs finished as soon as possible for each school year, or they could miss out on these excellent opportunities.
Scholarships are different. They are awarded based on criteria set by the organization sponsoring the scholarship. Additionally, the vast majority require students to apply directly to be considered. Application requirements vary, and some options are limited to applicants with specific criteria. However, there are a lot of them out there, so your child likely qualifies for more than they realize.
The best part about scholarships is that students can apply for them all the way through high school AND college years. So if your child needs loans for the first year, they could possibly secure scholarships for the following years and reduce the amount they need.
The idea of paying for college is stressful for students and their parents alike. Add to that the complexity surrounding financial aid packets and student loans, and it’s no wonder many people feel overwhelmed. To help you navigate through these mysterious waters, and provide you with some peace of mind, here is an overview designed to answer the question, how do student loans work.
In this article, we will cover the different types of student loans, how they work, including interest rates and their impact on students’ payments, and explain how you can simplify your search for the best student loan options.