Going to college is a big investment in your future, but it’s also a big financial commitment. The rising cost of tuition and fees can make it difficult for many students to afford a college education without taking out Student Loans. If you’re in need of financial assistance to cover your college expenses, you’re not alone. In fact, the National Center for Education Statistics reported that 85% of first-time, full-time undergraduate students at 4-year institutions received financial aid in the 2018-2019 academic year. With so many options available, it can be overwhelming to navigate the world of Student Loans. That’s why we’ve put together this ultimate guide to help you understand the best Student Loans for college and secure your financial future.
Types of Student Loans
Before we dive into the best Student Loans for college, it’s important to understand the different types of Student Loans available. There are two main types of Student Loans: federal Student Loans and private Student Loans.
Federal Student Loans
Federal Student Loans are loans provided by the government to help students pay for higher education. These loans offer low interest rates and flexible repayment options, making them a popular choice for many students. There are three main types of federal Student Loans: Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans.
Direct Subsidized Loans
Direct Subsidized Loans are available to undergraduate students who demonstrate financial need. The government pays the interest on these loans while you’re in school and during grace periods and deferment periods.
Direct Unsubsidized Loans
Direct Unsubsidized Loans are available to undergraduate and graduate students, and they are not based on financial need. You are responsible for paying the interest on these loans, even while you’re in school.
Direct PLUS Loans
Direct PLUS Loans are available to graduate or professional students and parents of dependent undergraduate students. These loans require a credit check and may have higher interest rates than other federal Student Loans.
Private Student Loans
Private Student Loans are offered by private lenders such as banks, credit unions, and online lenders. These loans can help fill the gap between the cost of attendance and the amount of federal financial aid you receive. Private Student Loans often have higher interest rates and less flexible repayment options than federal Student Loans, but they can be a good option for students who have exhausted their federal loan options.
Best Student Loans for College
Now that you understand the different types of Student Loans, it’s time to explore the best options for financing your college education. Here are some of the top student loan providers to consider:
Sallie Mae
Sallie Mae is a well-known private student loan provider that offers competitive interest rates and flexible repayment options. They offer undergraduate, graduate, and parent loans, as well as options for career training and K-12 education.
Discover Student Loans
Discover Student Loans is another popular lender that offers competitive rates, zero fees, and cash rewards for good grades. They offer undergraduate, graduate, and MBA loans, as well as consolidation loans for those with existing student debt.
College Ave
College Ave is a lender that focuses exclusively on Student Loans, offering a variety of loan options for undergraduate, graduate, and parent borrowers. They pride themselves on their simple application process and personalized loan options.
Ascent Student Loans
Ascent Student Loans offers a unique approach to student lending, with options for both cosigned and non-cosigned loans. They also have specialized loan programs for students with no credit history or a limited credit history.
How to Apply for Student Loans
Once you’ve identified the best student loan option for your needs, it’s time to start the application process. Here are the steps to apply for Student Loans:
1. Fill out the FAFSA
The first step in applying for federal Student Loans is to fill out the Free Application for Federal Student Aid (FAFSA). This form will determine your eligibility for federal financial aid, including grants, work-study, and loans.
2. Compare Loan Options
Once you receive your financial aid award letter, compare the offers from different lenders to find the best student loan for your needs. Consider factors such as interest rates, repayment terms, and any special benefits or discounts.
3. Complete the Application
When you’ve chosen a lender, complete the loan application. You’ll need to provide personal and financial information, as well as details about your school and program of study.
4. Review and Sign the Promissory Note
After your application is approved, you’ll receive a promissory note that outlines the terms and conditions of the loan. Review the document carefully and sign it to accept the loan.
5. Disbursement of Funds
Once the loan is finalized, the funds will be disbursed to your school to cover your educational expenses. Any remaining funds will be issued to you to use for other education-related costs.
Repaying Student Loans
After you graduate or leave school, it’s time to start repaying your Student Loans. Here are some important considerations for managing your student loan debt:
Understanding Your Repayment Plan
Most federal Student Loans offer a variety of repayment plans, including standard repayment, graduated repayment, income-driven repayment, and extended repayment. Each plan has different terms and may be better suited to your financial situation.
Consider Loan Forgiveness and Discharge Options
There are several loan forgiveness and discharge programs available for federal student loan borrowers, including Public Service Loan Forgiveness, Teacher Loan Forgiveness, and Total and Permanent Disability Discharge. Explore these options to see if you qualify for any forgiveness or discharge benefits.
Stay in Communication with Your Loan Servicer
Your loan servicer is the company that handles the billing and other services on your federal student loan. It’s important to stay in contact with your loan servicer and notify them of any changes to your contact or financial information.
Make Timely Payments
Make sure to make your loan payments on time to avoid late fees and negative impacts on your credit score. Consider setting up automatic payments to ensure you never miss a payment.
Conclusion
Choosing the best Student Loans for college is an important decision that can have a lasting impact on your financial future. By understanding the different types of Student Loans, exploring your options, and managing your debt responsibly, you can minimize the financial burden of your college education and set yourself up for success in the years to come. Remember to stay informed, communicate with your loan servicer, and take advantage of any available resources to help you manage and repay your Student Loans.
With the right knowledge and planning, securing Student Loans for college can be a valuable investment in your future.
