What you should know before signing a student loan

CainFinity Acceso
June 10, 2016       10:02 pm





A higher education can be very costly to you and your family. Most parents want their children to continue their education once they have finished high school. To get into college you will need a student loan.


  • Student loans
  • Private loans
  • Tuition rates
  • Admission rates
  • Services available

A student loan is provided to students to help them with their educational costs, textbooks, tuition, and living expenses. Most of these loans have low-interest rates and generally will not ask for any payments until after you graduate. Look at all the options that are available to you, this is one of the most important decisions you will have to make; this is where your future begins so don’t be in a rush, get some feedback, ask around, visit some colleges, look at the courses and majors they have to offer. What licenses are offered (degrees, certificates), look at the school rates, ask some of the students that are attending, what is the percentage of students that get a job after graduating?  What services are offered to the students? Do they offer job placement? Look at the classroom ratios, course availability, educational program, online and on-campus programs, where is the school located? Is it convenient for you?  As you can see there is a lot of information that you need to be aware of to make a decision, so do your research.

Before you decide to get a student loan get information on how you can sign up or qualify for scholarships and grants. This is actually free money with the exception of grants. Some of the money for a grant would need to be paid back only if you drop out of school or your grades are extremely low.

There are several loans that are available to college students; but the main two are the Federal loan and private loan.

Federal student loans come from the government and offer lower interest rates and provide different options to repay your loan.

Private student loans have higher interest rates, based on your credit history, and you are also required to have a co-signer, and are offered by banks, like Wells Fargo or Sallie Mae.

There are also some words that you should be aware of and know the meaning too; it is important that you are fully aware of what you are signing.

  • FAFSA– (free application for student aid)
  • Subsidized– is money that is given to a student that has applied for financial aid and their financial need; and is paid by the US. Department of Education.
  • Unsubsidized– is when your interest keeps going up throughout your schooling and when you graduate is added to your loan.
  • Grace period– 6-9 months that are given to you after you graduate to start paying off your loans.
  • APR– (annual percentage rate) the percentage that is owed for borrowing money (loan).
  • Repayment plan– a plan that is done by the borrower and the lender come to an agreement of how much and when payments will be made.

Take into consideration all these tips before signing your student loan, research, and gather as much information as possible before coming to a decision.













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