Smart Borrower Center
Tools to help you borrow better
Once you’ve been accepted into college, you figure the hard part is over. Not necessarily! Now you have to figure out how to pay for your education. You or your parents may have money set aside for your college education, or you may need to secure some education loans. Navigating the student aid maze can be intimidating and overwhelming, but there are things to keep in mind that can make the process easier.
First, decide what kinds of loans are best for you and your financial situation. Borrowing money is big deal. Loans will appear on your credit report and will impact your credit score. This can affect your finances for years after you are done with your degree program. So before you even apply for a loan, make yourself an informed consumer. Know the difference between federal loans and private loans. Also, know and compare interest rates and repayment plans. By being an informed consumer, you can finish your degree program with a budget in mind instead of drowning in debt.
Also, before you begin the actual loan application process, it’s important that you have your finances organized. On the application forms, you may be asked about your income, your parents’ income and tax information. If your taxes are not complete when you apply for Federal Student Aid, you can use the previous year’s information to get an estimate. It’s important to keep your financial information organized and accessible can help you navigate the student aid maze.
Another good way to not get lost in the student aid maze is to know who can help you. Visit your school’s financial aid office and make an appointment with a counselor. This way, you can create your own timeline and better know the financial aid process.
Published on September 18, 2006