Sep 16, 2014
In June 2014, it was reported by The Economist that the student loan debt exceeded $1.2 trillion in the U.S. Every year thousands of students and even their parents opt to go for a student loan to afford college tuitions. Before you embark into loan application, you could consider the following:
- Research on the type of loan you are applying for.
Applying for a loan is an important decision. Knowing about the characteristics of the loan you are applying for can help you in your decision. Often students can quality for several types of loan, whether they are Perkins loans, Stafford Loans or PLUS loans.
- Keep track of your credit score and have a copy of your credit report
Your credit score can have an impact on the type and amount of loan you can be eligible for. It is important to know your score and to report any errors or potential corrections before going to your financial aid officer. If you have a poor credit score, you might consider loans that do not require this information.
- Know how much you would be earning after graduation
Study the industry around you, especially in your location and field. If you are majoring in a field where the rate of unemployment is high, it might not be advisable to opt for a big student loan. Find out what could be the average salary of young graduates in your field and in your area.