Category: Applying for Student Loans

Have you applied for scholarships, but haven’t been lucky enough to win any? It may be time to apply for a student loan. In this section, we’ll give you some helpful advice on what to look for in a student loan, as well as information on application requirements and other important factors you’ll need to consider before applying for a student loan.

7 Secrets to Getting the Best Student Loan Rate
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Your parents will tell you, “a penny saved, is a penny earned.” In today’s economy, saving as many pennies as possible is more important than ever. Savvy consumers price shop for everything – even milk. The same should be true for private student loans. There are a number of banks and other lenders that make credit-based education loans available to students, but how do you actually get the best rate? Well, of course we’ll tell you the best place to start is by comparing student loans using our LoanFinder. However, we’re leaving the choice of lender up to you, the borrower. We think we can do better so without further ado, here are seven things you can do to ensure you get the best rate on your student loans.

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Do I Borrow Student Loans for One Year or All Years?
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student loans are borrowed one year at a timeNow that we are in peak borrowing season for private student loans, our customer service inbox is overflowing with your questions.  One question in particular keeps popping up so we’re going to address it quickly here and try to save some postage.

A recent email asked, “My daughter needs to borrow $10,000 this year to finance her costs.  Does she request $10,000 for just this year or $40,000 for all 4 years she will be in school?”

It might seem convenient or even cost-effective due to current low interest rates to finance an entire education up front.  However, the student would still be accruing or paying interest on the full amount borrowed while in school.  As you can imagine, the interest charges on $40,000 are much higher than on $10,000.  Let’s take a quick look at how eligibility is determined to see how the borrowing process works.

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Does Applying for Multiple Student Loans Hurt My Credit?
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Student Loans and Credit ScoresWe get this question a lot. It’s nice to know that some borrowers and cosigners are concerned about the impact applying to multiple student loans may have on their credit. After all, our good credit allows us to finance important big ticket items like cars and homes and receive better rates on things like car insurance and credit cards. And, as anyone who has reviewed their credit score after applying for a loan can tell you, your score does decrease somewhat based on how recent the inquiry is. Whether it’s an auto loan or a student loan, credit scores are affected by inquiries. Fair Isaac, the company behind the FICO score, has a pretty good explanation about how borrowers should approach the problem and we’ll try to break it down here.

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Understanding Student Loan Borrower Benefits
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Borrower BenefitsIf you’ve exhausted your federal financial aid, and haven’t been lucky enough to win any scholarships to help cover your remaining expenses, chances are you are now researching private student loans to help pay for college. If so, there are several things you should consider before signing on the dotted line. First of all, you’ll most likely need a cosigner, especially if you are a younger student or haven’t been working at a stable job for several years. Approximately 90 percent of borrowers will need a cosigner, so don’t take it personally. Next, you’ll want to be sure that you borrow only what you absolutely need. Finally, consider the annual percentage rate being offered and any student loan borrower benefits that might be available. For those of you who may be unfamiliar with borrower benefits, these are perks you can earn based on a variety of factors. Let’s take a look at some of the current benefits being offered by private student loan lenders and how they can affect your bottom line.

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What to Look for in a Student Loan Cosigner
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Student Loan CosignerIf you’re thinking about taking out a private student loan for college, chances are you’ll need a cosigner to get one. Very few students meet the qualifications for securing a loan on their own. In fact, the Consumer Financial Protection Bureau reports that about 90 percent of new private loans require a cosigner. A good student loan cosigner can not only help you secure a student loan, but also obtain a more favorable interest rate. It’s important, however, to understand the risks a cosigner assumes when he or she agrees to help you obtain a loan. He or she will be equally responsible for paying off the debt, even if you don’t finish college. Should you fail to make payments, your cosigner will be required to not only cover the past due amount, but also any interest fees and other charges that have been assessed. You should only turn to private students loans with a cosigner once you have exhausted all other possible funding sources, such as federal student loans and scholarships. If you do need to pursue a private student loan, here are a few things to consider before asking someone to set up as your cosigner.

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