It is a sad fact that many students must secure a student loan before they can attend the university of their choice. More and more students are graduating with not only a degree, but a huge debt load as well. Before you apply for a student loan, there are some things you should be aware of. The President’s State of the Union Address on January 24th offered some suggestions at relieving the student loan debt load. One of the suggestions was to keep the interest rates low, as opposed to doubling them; another suggestion was to extend the tuition tax credit. If interest rates rise, and the tuition tax credit expires, students can expect their fees to rise about 4%.
Regardless of what is happening in the USA economy, or what policies are going to be put in place, students still need to secure an education. There are many banks and financial institutions that help students get the help they need, at a reasonable interest rate.
The chances of getting a student loan will increase greatly if you are prepared and have the following things in mind. The bank will want to know:
- How Much Are You going to need? Consider your tuition fees, living costs including food and shelter, clothes, books, and technology such as a laptop or tablet.
- Which Institution are you attending? They will want to make sure that it is an accredited university and has a good reputation.
- Are you going to live on campus or off? Some institutions only allow you to live on campus for the first year, and then you must find accommodations of your own.
- What is your chosen field of study? They will want proof that you are indeed enrolled and studying a certain program; they will also look at the length of the course.
- What is your credit rating? Sometimes no credit rating is worse than bad credit; they may want your parents to co-sign the student loan.
- Were you awarded any scholarships? They will want to know how much they will need to lend you compared with how much you already have.
- Are you Getting a Part-Time Job? Banks look favorably on those who show an effort to pay off their debt. If they know you are working, at least part time, they will be more apt to approve a student loan.
The key to financial success is to pay your debts off as soon as possible; student loans are no different.