Ask yourself the following questions before proceeding:
1. Are you ready federal loans or private loans? (That is, they have been issued to you from the government or a private bank or lender?) For more information on certain types of loans, go to the student loan FinAid explanations.
2. Please note that your federal loans are usually set at a relatively low rate, while the private loans calculate interest using a variable rate that depends on your credit and current rates.
3. What types of loans you have, for example, Stafford, PLUS, Perkins? Are you ready subsidized or unsubsidized? (A low-interest loan, which is need-based, does not require you to pay interest while you are in school. Sur unsubsidized loans, interest accrues during your studies if you are yet to repay the loan or not).
4. How much debt do you have? Through how many lenders?
5. Are you currently in a grace period before repayment starts?
6. What is your repayment period (ie, are you expected to pay off your loans in 10 years?15?) 7. What are the interest rates you are currently paying on your loans?
To understand the differences between federal loans and private loans, go to the Student Loan Borrowers page about understanding student loans.
Another great resource for understanding your student loans is Simple Tuition, which not only provides detailed information about various loans and their options but allows you to comparison shop for consolidation offers or new loans.
Research your private loans on your lender's website (almost all lenders will allow you to manage your account online with a user name and password), and bookmark the site for future reference.
1. Are you ready federal loans or private loans? (That is, they have been issued to you from the government or a private bank or lender?) For more information on certain types of loans, go to the student loan FinAid explanations.
2. Please note that your federal loans are usually set at a relatively low rate, while the private loans calculate interest using a variable rate that depends on your credit and current rates.
3. What types of loans you have, for example, Stafford, PLUS, Perkins? Are you ready subsidized or unsubsidized? (A low-interest loan, which is need-based, does not require you to pay interest while you are in school. Sur unsubsidized loans, interest accrues during your studies if you are yet to repay the loan or not).
4. How much debt do you have? Through how many lenders?
5. Are you currently in a grace period before repayment starts?
6. What is your repayment period (ie, are you expected to pay off your loans in 10 years?15?) 7. What are the interest rates you are currently paying on your loans?
To understand the differences between federal loans and private loans, go to the Student Loan Borrowers page about understanding student loans.
Another great resource for understanding your student loans is Simple Tuition, which not only provides detailed information about various loans and their options but allows you to comparison shop for consolidation offers or new loans.
Research your private loans on your lender's website (almost all lenders will allow you to manage your account online with a user name and password), and bookmark the site for future reference.
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