Student Loans.... This topic has skyrocketed to the top of conversation lists for all my friends that just graduated college. Although for some this might be scary, I believe that student loans are a very necessary and practical way to pay for higher education. I am lucky enough to say that I do not have any student loans, however, I am quick to realize that I am of the vast minority in this area. Sooo, I am mostly aiming this at the youngsters who are thinking about taking out a loan for educational purposes. If you are looking to me for advice, (which I strongly recommend) I will give you some important info to help make your decision a little easier.
There are a variety of types of student loans that are available to students. These loans include, federal
student loans to students, federal student loans to parents, and private student loans to students or parents. The main difference between these types of loans is that the private loans can be used to supplement federal loans when they are not enough to cover the cost of education. There are minor differences in payment, but take the time to look over that at your leisure.
Another important detail to remember is that private student loans have variable interest rates while the federal student loans have fixed rates. Since you all are avid followers of my blog now, we learned from credit cards that interest rates are where we can end up losing massive amounts of money. Make sure you pay attention to interest rates. Write it down, that is my tip of the day. There is no charge for that in case you were wondering.
As I stated before, student loans are a very useful way to pay for an education. Although at first it may be daunting, in the long run your education is worth it! My advice for everyone is to get a scholarship so you don't have to worry about student loans. Just kidding, make educated choices that are backed by research and implement an organized plan so when it is time to pay the loans back, you are as ready as can be!
