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What to Look For in a Student Loan |
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Contributed by Alex Robb
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If you apply for a student loan, you may be overwhelmed with
options. This guide shows you how to pull order from the chaos.
Interest Rate and Discounts
Loan providers will have different interest rates that may change over
different periods. They can be tricky to figure out, and
sometimes the actual numbers are hidden until you sign up. Try to
find the interest amount and any available discounts, which usually
come in the form of a discounted interest rate after a certain number
of payments.
Your School’s Preferred Provider
Your school’s preferred provider means absolutely nothing. That
provider is paying your school for every person they refer to be the
“preferred provider.” Ask a representative in the student finance
department why that carrier is “preferred.” If they say the
lender has great rates, have them provide the rates. Then, use
that info to compare with other lending companies.
Recommendations
Members of your family, your neighbors, your friends have gotten
student loans. Ask them for a recommendation (but don’t be
surprised if they say something like, “it’s the one with the tree
branch in their logo”).
Next Step: Student Loan Consolidation
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