When it comes to taking out a loan the options, terms, and amounts can feel overwhelming. There are many reasons throughout your life where you may consider a loan but are not sure the type and how much you actually need.
Most of us take our first loan when beginning college but that also means we have little experience and are more limited to different types of loans as well.
Private student loans
When choosing private student loans its important to review the various options and receive support to help you pick the best one for your needs. Many people think the lowest interest rate is always the best option but it really depends on the repayment terms and your ability to start paying back right away.
For example:
If you need more time to pay your loan back and can’t afford fees look at the plans on sites like Saving for College to review specific plans that have no late fees and long repayment options. On the other hand, if you are working and are adding a degree for a higher paying position you may prefer a very low fixed rate from a lender like Earnest that also has no fees.
As a first-time student picking loans with rewards is a great option. Such as an autopay discount, customizable payment due dates, and options to skip payments.
Whichever option you choose, always take time to pick wisely and do your research.
Flexible Repayment Options
As mentioned for new students or students that require more flexibility due to seasonal work or other constraints consider a loan with longer repayment options and a manageable fixed apr. Usually the sweet spot is trying to stay under five percent. Avoid fees that can easily add up and autopay discounts. The following lenders offer some good options:
- Wells Fargo
- Earnest
- Sallie Mae
Deferments are also an important consideration for flexibility. If you need to defer a payment don’t wait and accrue late fees instead contact one of these lenders for options:
- LendKey
- Ascent
- SallieMae
Understanding Repayment interest rates
Since every student loan is due once you leave school you will want to find a balance between long-term payments and low-interest rates that work with your ability to make payments if you are a student, parent, or grandparent.
If you are a parent, for example, there are loan arrangements that are more suited for you based on compiled data for what most parents search for – autopay discounts, short and long-term repayment plans, and fixed and variable APR’s.
If you are considering a student loan do your homework and choose a plan that will work as hard for you as you are working to get through college.
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