5. Compare Federal and Private student loans
One of the reasons why many high school graduates are not enrolling in colleges immediately after graduating from high school is the fear of high student loan debts. Everyone fears debts, but they are worth it if you have no other means of financing your education. To reduce the cost of your education and make sure that your student loan won’t accumulate to a level that you will have difficulties in paying, you have to compare Federal and private student loans. Opt for the one with the lowest interest rate. Government loans are known to have the lowest interest, but some private loans have lower interest rates than that of the government.
Apart from checking the interest rates, you also have to make sure that you are not borrowing more than you need. The best thing to make sure that you are not over-borrowing is to apply for the available student loans after factoring in gift aid, grants, and scholarships. Remember, the more you borrow, the more you will struggle when paying back later.
6. Pick an accredited school
Federal financial aids are only available for students in colleges that are federally accredited. There are some student loans that are available for students that are in online colleges that aren’t accredited, but most of them are from lenders with higher rates. Apart from being eligible for most of the student aid and loans from the government, picking an accredited online college is like a guarantee that employers will accept your qualifications and certifications.