A WATCHFUL EYE:
Tips for Borrowing Money
Here are some things to keep in mind before borrowing money to pay for college:
KEEP IT TOGETHER :: If you're thinking of borrowing more than once, consider using the same lender so you'll have your loans together in the same place.
STAY IN SCHOOL :: Some loans require you to be enrolled at least half-time until you receive your degree, or else your loans could be called into repayment.
A CLEAN RECORD :: Make sure your credit report is in good standing — lenders give lower interest rates to borrowers with strong credit ratings.
PLAN AHEAD :: Find out what your estimated total debt and interest charges will be. Most education loans have a variable interest rate (subject to change), but also a rate cap that prevents interest payments from getting too high.
TIME TO PREPARE :: Ask about a grace period on your loan, and if there is one, how long it is.
KNOW YOUR OPTIONS :: Choose a lender with flexible repayment plans and be sure to ask what your specific options are. Also, ask if your lender offers any benefits like reduced interest rates for on-time monthly payments.
KNOW THE COSTS :: Check for any fees associated with your loan — there can be fees for everything from simply applying for the loan to making a late payment.
HELP YOURSELF :: Make your loan repayment easy and convenient by choosing a lender that offers online bill-pay and has a solid track record for customer service.
