Student Loans Explained In Under 2 Minutes

Congratulations. You’re ready for college. Now, let’s talk student loans. A student loan is a type of loan used to pay
for post-secondary education, and is repaid over time. The two types of student loans are federal
and private. A federal loan is funded by the government,
typically with better fixed rates and repayment plans. A private loan is funded by a lender, like
a bank or credit union. You may qualify for additional discounts,
however most students will need a cosigner for this type of loan. The quickest way to apply for any student
loan is online. For federal, you’ll need to fill out a free
application for student aid, also called “FAFSA.” To qualify, you must have a high school diploma,
a valid social security, and be enrolled in a certificate program. For private, you’ll need to complete an application
on your lender’s site. The loan amount will depend on your degree
completion time. The average student loan amount per year ranges
from $8,000 to $16,000. Your interest rate is how much the lender
charges to borrow its money. The higher the interest, the more you’ll pay
in the end, so it’s important to compare rates. With any loan, you’ll set up a payment plan,
and your monthly balance is usually determined by your yearly income. There is plenty you can do to minimize financial
woes and be on your way to college. Visit Mint in your app store. We bring together everything, from balances
and bills, to your credit score and more. It’s your financial life in one place that’s
easy to understand.

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