I have heard it said that education is the best investment. Whoever said that could probably afford their college fees. Don’t get me wrong. Certainly I am all for higher education. At the same time, I am not a votary of being under unnecessary debt. This is where the contradiction arises.

What complicates this conundrum is the fact that if you go to college, you are more likely to be able to pay your debts. So you have to get an educational loan (and a college education) to be able to repay loans in the future. I guess you can see why I call it a conundrum!

First of all, realize that you can get a college loan. Sounds obvious, right? Not really! I have heard of many candidates who hesitate applying for a college loan as they have a poor credit history. Surely, poor credit history will make it tougher to get an educational loan. But, it is far from impossible. In fact, I think that going ahead and getting a good education is one of the great methods of trying to come out of a financial jam.

Having said that, I do not want to sound like I am very forgiving of a loan-tangle. Barring exceptions, most people get into a debt trap due to irresponsibility. So, do the adult thing today and acknowledge fault. Then promise yourself that you will do the right thing after college and repay all your existing loans – including your student loan.

When looking for a students loan, make sure to explore the usual options first: The Subsidized / Unsubsidized Stafford Loan, the Federal Perkins Loan, the Federal+ loan for parents, the Direct PLUS loan, the Federal consolidation loan, the Private student loans, and the like.

What you need to keep in mind is: Is the specific loan you are applying to available for undergraduate studies or graduate studies (or both)? Is the loan need based or merit based? What documents will you need to demonstrate financial need? Are there any specific loan options available to you if you are applying to specific programs, e.g., Federal Nursing Loan and the Health Professions Student Loans?

Keeping all this in mind will be a good first step towards getting a students loan. Remember your education should be a stepping stone to a better life, not a means to get stuck into a deeper financial hole.



By: Ajeet Khurana

About the Author:

girllygirllyheart asked:


Student Loan Consolidation?
I have a question about student loans that are consolidated. I always make my payemnts on time. As soon as I receive the bill, I send the payment out the next day, have never missed a payment or been late. Aslo, I have a fixed interest rate. HOWEVER, MY INTEREST balance fluctuates every month. When I asked the people direct loan servicing center about this, I was told that they have to have a payment EXACTLY every 30 days in order for the interest not to fluctuate. What’s going on here? Isnt this the biggest load of crap you have ever heard? Anyone else experience this?

Jordan J-P asked:


I plan on attending college soon, and was wondering If I should apply for student loans ? Applying for a student loan, is this a good thing or bad thing ?

Best Regards

Jordan

Myco asked:


Recently my student loan was out of default and then transferred to another bank where it shows a double increase to my monthly payments. How should I go to consolidate them to a lower payment (Lower than 800 per month!! for 50 grand). Should I go Private or Federal Loan Consolidation? Any trusted places to contact and consolidate them? Much appreciated.

College Kid asked:


I will be a Sophmore this coming year, and no one in my family is a credit worthy co signer, and I do not have any established credit. I have the Stafford Loan and that is it. Any help would be greatly appreciated. I do not want to drop out of college, but it’s looking like that is my only choice.

Adam the Poet asked:


I am worried that my credit score will drop when i go to college because i have to take out a loan for college. How do i go to college on a loan but still manage my credit score.

rbcny9 asked:


What does a student loan company like Stafford do to co-signers? Do they get notified of the loan if someone takes one out and uses them as a co-signer but pays it back right away? If so, how? I joined the army so I get loan repayment.

NB asked:


I have horrible credit. I have a private student loan that someone co-signed for me. Her husband saw it on her credit report and wants it off now. So I need to find another lender that will deal with bad credit and get another loan to replace this one and it has to be done quickly. I’ve already tried to consolidate all my private loans but it’s a no go without a co-signer. So it’s just this one loan that I need to get changed. Is there a company that deals with bad credit and private student loan consolidation?
I have already used all my federal loans. Because of my husbands income I don’t qualify for alot. So I have to use private loans also.

delana708 asked:

DEBT CONSOLIDATION LOANS Bad Credit Debt Consolidation Bills and debts getting a little out of hand? Lower your monthly payments by consolidating them into one low payment. You can consolidate anything. Credit cards, car loans, personal loans, second mortgages anything and everything! We…

ctgirl1 asked:


I am going back to school in the fall and I need a loan to cover the costs. I already have a federal loan, but it isn’t enough to cover tuition and living. The only bad thing is that I have bad credit and keep getting turned down for loans. Is there anyway to get a student loan, other than federal, with bad credit?