There’s no way around it - a college education isn’t cheap. Tuition cost has been rising steadily for many years and prospective college students and their parents are faced with the issue of having to pay tens or even thousands of dollars for education. Luckily, there are a few things you can do to get the money to pay for your education and one of the most popular options is to take out a student loan.
What types of student loans are there?
Broadly speaking, all student loans fall into one of two categories - there are private and federal loans. Traditionally, federal student loans are considered to be your best choice because of their lower rates and better protections for the borrower. However, you may not be able to get the entire sum you need through a federal loan, in this case, getting a private loan will be your next choice.
What are the best private student loans?
While there are numerous options when it comes to private student loans, there are two companies that stand out compared to the rest.
Credible student loans - the most user-friendly option
Credible is not actually a private student loan lender, but it is a company that gathers information from lenders, allowing you to shop around and find the best student loan rates and terms for you. The numerous advantages of getting a student loan through this platform include low rates, a wide variety of lenders, which allows you to find the best student loan option for you, no prepayment penalty and great customer service. Additionally, when you use Credible, you don’t need to pay an origination or service fee on your student loan.
Discover student loans - best student loan rates
If you don’t want to compare hundreds of student loan options from dozens of lenders and instead want to simply choose one private student loan lender and stick with it, we recommend that you go with Discover student loans. Student loans from this lender have numerous advantages. First of all, Discover allows you to get a variable rate loan with an APR of 1.80% to 10.37% or a fixed-rate loan with an APR of 4.74% to 12.74%. Secondly, you don’t need to fill out a loan application or pay origination and late fees. Plus, Discover offers interest-only repayment discounts and even a reduction in the interest rate if you enroll in automatic payments.
How to pay for college?
When it comes to paying for college, there’s a traditional road map that you should follow to minimize the amount of money you have to spend on your education. The first step in paying for college expenses should always be trying to get as many grants and scholarships, which are basically free money that you don’t need to repay later, as you can. Do your research in advance and apply for as many scholarship opportunities as possible. Your next step should be to take out federal loans for the maximum amount possible, as these loans usually have lower rates than private student loans. You should also try to get a subsidized student loan, as in this case your loan interest rate will be paid by the government for as long as you are in school. Finally, take out private loans for the remainder of your tuition.