Understanding the Student Loans

Since the cost of higher education in the United States is high, the student loans are becoming a necessity. This is because most of the students are unemployed and therefore, do not have enough funds to finance their education. A recent survey showed that about 70 percent of Americans every year apply for student loans to facilitate their studies. This article tries to shed light on the students’ loans;

Types of loans

loans There are two types of student loans: the private and the federal loans. The private loans are offered by private entities like Sacco’s, individuals and banks. Before the private entities provide you these types of loans, they will check your eligibility which will determine the interest rate on loan. Since some students are usually minors when they are joining universities, they can apply through a parent, guardian or cosigner.

The government issues the federal loans on the other part. In the United States, for instance, this type of loan is granted to students who have attained a high school diploma. There are three categories of the student loans namely the Perkins loans, the Direct PLUS loans, and the direct loans. Of the two types of loans, many people prefer the federal loans because of the lower rates and a flexible repayment plan.

Applying for the loan

For you to be awarded the student loan, you will have to apply for the same. Whether you want a private or a federal loan, you will have to fill out the necessary documentation. Once you have filled the forms, they will scrutinize them before deciding. To increase your chance of being awarded the loans, always ensure that you apply for the loans that you are eligible for.

Financial aid award

After you get admitted to the university, you will most probably receive a financial aid award letter. Many students are usually confused with this because many at times it comes with the grants and scholarships. Whereas the grants and scholarships are free money, the loans are not free since you will be required to pay for them once you clear college. Make sure that you distinguish the two since they may become useful to you soon.

Interest rates

interest ratesAlso get to know as to when the interest rates will begin taking effect. In some cases, it may start as soon as you get the loan, whereas in some cases it will only begin after you have finished college. This is critical as it will determine the amount of money that you will pay. When the repayment time comes, and you have more than one loan, then it is highly recommended that you consolidate your loans. If you are wondering on how to best refinance student loans, click on the highlighted link. Watch the video below on how the student loans work.

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Tips for finding and selecting a credit counselor

Knowing how to manage and save your money is very important. Sadly most working people do not create the time to learn about the best ways to spend money during their working days. The lack of information about Free Credit Counseling has led to many broke older adults. It is advisable that during your working days you save and invest as much as you can. A good credit counselor can help you make wise investments that can help you during your retirement years. Therefore, for anyone who is starting out in a job, it is essential that you find someone who is experienced and can advise you on saving and investing. And even for those who have worked for a while but still feel that their savings are not enough should seek the services of a credit counselor. A counselor who can teach you on how to save before you spend can transform your future. If you do not know how to find a credit counselor, then written here are some tips to guide you.




The best way to find a trustworthy counselor is through reference. Reference, especially from friends, family, or workmates, can help you find someone who is already helping or has helped the people you know and trust. Try as much as you can to compare the different referrals you get and find the one who you can relate and trust with your credit transformation journey.




If you are ahead of the park and your colleagues cannot refer you to a credit counselor, then you should try the internet. With the internet you will not only find the best-rated credit councilors you will also be able to find someone who works near you. However, when using the internet, you should be careful when selecting a person. Make sure to read the reviews made by the clients who have utilized the services of your chosen counselor.


Visit a counselor


creditcounseling1Once you have found a counselor through the internet or referral, you should make sure you visit his or her office. Since you are planning and organizing on how to save your hard earned money, a visit to counselor’s office show commitment and helps create a strong bond. A visit also helps you to get to know your counselor on a personal level.


License and registration


The counselor you select should be licensed and registered. It is necessary that you make sure the person you are about to trust with your future is learned and has been given the mandate to counsel people about credit and money management.



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