Tips for Successful Student Loan Applications
Knowledge isn't just power, it's also money
If you're considering a private student loan, but don't know where to start, our best piece of advice is to compare your options. There's nothing more powerful than knowing your options. But once you see what's out there, how do you pick the loan that's right for you? And how do you get approved?
Know how much money you need
Do your math and know how much you need to borrow. If you borrow too little, you might find yourself without money mid-semester. Take out too much and you might have a hard time paying it back later. Our tip is to do your best to account for and estimate unplanned expenses. If you build some wiggle room into your financial plan for the unexpected expenses, you will have a much better chance of not needed to go back to the bank for more money.
Crunch the numbers
Decide if you will defer your student loan payments or if you want to start paying your loans back while in school. Then, figure out how much you can afford to pay each month. See which loans match your needs and pick the one with the smallest total cost.
Get a credit-worthy cosigner
The most important number in this process is your cosigner's credit score, which will affect the interest rate and fees of your loan. If your cosigner's score is low, your rate will likely be high. High rate means high cost. Ensure your cosigner has been diligent about their credit before you apply. The easy trick: find someone who pays their bills on time.
Get started early so you know what you’re getting yourself into. Compare your loan options today!