It's about that time to get enrolled for a new semester. My previous post "Where's the Money" spoke on options to find money for school. As it stated, borrowing should be your absolute last option. However, many students still use loans to pay for their education. Let's drop some knowledge on the World of loans.
Firstly, there are different types of loans out there. An unsubsidized loan is a government loan given based on your FAFSA. Look for these type of loans because you do not have to pay them back. Subsidized loans are also give based on the FAFSA. However, a subsidized loan must be payed back, with interest.
Private loans should only be used when all of your options have been exhausted. These are second party loans either from the bank or another financial institution. The rates vary based on the company. When looking at private loans as an option, find one with low interest rates as well as payback option you can achieve.
When I entered into college, I used a private loan. I did not look at all of my options and will have to pay back a lot in loans. My advice to incoming Freshman is to use other options such as scholarships, grants, or donations to pay for school instead of turning to loans. If money is still a problem, try attending a community college for a year and transfer. This will allow you to build up credits and save money on years at a University. It is important to understand that loans will have to be paid back in the long run. Use cautiously.
