January 16, 2018

Dos and Don’t s of Student Loans

getting a student loan for the first time can be quite a challenge. it is new and the fate of your future education rests in the hands of a private lender or the government.  you need help. a student loan is expensive and you don’t just sign a lot of papers and head straight to college without knowing what you are getting in to.

student loans dos

  • do apply for a grant or scholarship first before you go for a student loan. exhaust this possibility first  since it is free and won’t tie you down with any future payments
  • do scout around for the best student loan rates and terms and get the ones that you need. it  is necessary that you understand what you are signing but do negotiate with confidence that you will be successful in life later on.
  • do get a letter from your university for support in getting financial aid. ask questions from your financial aid office so that they can help you in the process of getting a loan. they are there for you.
  • do know the difference between a subsidized loan and an unsubsidized loan.  it is better to get subsidized loans as these are easier on the borrower and has more terms in favor of the student.
  • take advantage of the grace period when you graduate to look for work and start paying off your loan when you can.

student loans dont’s

  • don’t take on loans in excess of what you will need. remember that while you may not be paying anything while you are still studying, you will still pay the loans after you graduate.
  • don’t agree to anything that the lender will stipulate. learn to negotiate and understand what you are getting into before you sign anything.
  • don’t take too much time off away from school or the lenders might think you are not returning and send you loan payment bills. keep them informed about your plans.
  • don’t keep getting loans thinking that you can consolidate later on.

now that you have a few guidelines, allay your fears of not getting into a good university. it just takes knowing what you need and going for it. to your bright future astudent loans south africahead!

IMPORTANT: We do not give out financial advice. We operate an online referral service and we forward on all your requests and applications to qualified licensed third parties with whom we have pre-arranged agreements. You will deal directly with these advisers. We may also receive remuneration or commissions from these third parties for referring you to them. Remember to seek independent financial and legal advice from a qualified person before entering into any binding financial transactions.
Disclaimer | Privacy Policy © Approved Financial 2005 - 2012.