Nearly 70 percent students have taken some kind of student loan to finance their education. And if you form part of this group, you are probably wondering how you will repay your loan. And if you still planning to take a loan, here are a few things that could help you make the most of your student loan.
But before we proceed to that, let us look at some figures. I know I have a penchant for spouting figures and facts at any given occasion. I believe that they help keep things in perspective. What do you say? Anyways, getting back to our figures (there’s no escaping that!) FinAid claims that two-thirds of college students borrow to pay for school, with an average loan debt of nearly $20,000. Ten percent of parents borrow an average of $16,218 to finance the education of their children. These figures account only for undergraduate education. Graduate degrees can pack on an additional $27,000 to $114,000 in student debt.
Moreover, this year, two new rules were introduced: interest rates on new Stafford loans will now be locked at 6.8 percent. The other rule is that now if you have multiple loans with one lender, you do not have to perforce consolidate with the same lender. You can consolidate with any lender. If you haven’t managed to secure a loan yet, try again next year. If you have older student loans that you have not consolidated, make a note on the calendar to check rates before next year’s consolidation deadline. When you apply for a loan always, compare rates. Whether you’re looking at new loans or old ones, check to make sure you are getting the best deal. Check out some of the easy-to-use Web site calculators, such as the one in the Bills.com Savings Center.