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If you’re new to the world of education loans, the details can be confusing. We want to help you understand and think smart about loans so you can confidently make the right choices now and manage your education debt successfully down the road. Welcome to Loans 101, the basics on education loans and what you need to know to borrow wisely.
DOWNLOAD THE EDUCATION LOAN GUIDE
Most families need help covering the costs of a college degree or training program. Personal savings and free aid like grants and scholarships (money you don’t have to pay back) can go a long way. But you may still need more financing to cover all your costs—including tuition, fees, housing, food, books, transportation, a computer, and other expenses. That’s where student loans come in.
Here’s the key: Loans are borrowed money that must be paid back with interest. This means that the amount you repay will always be more than the amount you borrow. That’s why you should compare your options carefully and understand all the details before borrowing.
BORROW ONLY WHAT YOU NEED
Your goal should be to minimize loans as much as possible. You can choose to decline a loan or borrow less than what is offered, reducing what you’ll need to pay back.
There are 2 main loan types to choose from:
STUDENTS: START WITH DIRECT STUDENT LOANS
Borrow the maximum in federal student loans first, because federal loans offer income-based repayment and other repayment options. After reaching the maximum in federal loans, compare all other loans for the lowest rates and best repayment terms.
Learn about COVID-19 and Student Loans
Education loans are NOT created equal. Know the differences and compare.
KNOW BEFORE YOU SIGN
Beware of “teaser” interest rates; few people actually qualify! Never apply without knowing what you might ultimately pay and determining all possible interest rates, costs, and fees. Learn about what to consider.
Give us a call to speak with one of our counselors.
Monday–Friday, 8:00 am–4:30 pm, 800-226-1029