| With the rising cost of education nowadays, student | | | | expenses. |
| loans is one of the best ways to pursue your tertiary | | | | The Period Of Student Loan |
| education since many students cannot afford to pay | | | | Both government and private student loans provide |
| the education fees. However, before taking the | | | | loans which can last anywhere from 1 year to 20 |
| plunge and taking up a student loan, you need to ask | | | | years. For longer loan periods, you need to factor in |
| yourself the following questions to decide the type | | | | the interest rates since you can end up paying a lot |
| of student loan that you need. | | | | for interest and every little for your principal student |
| The Types Of Student Loans | | | | loan amount. |
| There are 2 main categories of student loans | | | | You need to determine how much you can pay per |
| currently available. Government student loans which | | | | month after you graduate and have a buffer of at |
| are loans carried out by the government and private | | | | least 3 to 6 months in the event you are jobless. |
| student loans which are provided by the private | | | | Other Outstanding Loans |
| sector. There are pros and cons to each but | | | | If you have other outstanding loans as well, you |
| generally government student loans have lower | | | | might want to consider consolidating the loans before |
| interest rates, are quite easy to get approved since | | | | getting another student loan. |
| they do not take into account of your credit history. | | | | Without proper discipline and control, repaying multiple |
| For private student loans, the interest rates are | | | | loans can be a huge financial strain. It is better to |
| usually higher but they allow greater flexibility when | | | | clear all your outstanding loans before getting a |
| repaying the student loans. | | | | student loan. You can get better interest rates for |
| Student Loan Amount | | | | your student loans as well since you have better |
| Generally speaking, government student loans are | | | | credit score. |
| usually fixed amounts depending on your education | | | | Interest Rate |
| level. For private student loans, the amount that can | | | | The interest rates will vary from lender to lender. |
| be loan is more varied and depending a lot on your | | | | Government student loan interest rates are usually |
| credit history and the repayment plan. | | | | fixed and pretty low. Private student loans interest |
| It is recommended to borrow only the amount of | | | | rates varies depending on the type of payment plan |
| money you need for your education. To do that, you | | | | you choose. |
| need to estimate how much you will need during the | | | | If you just want to repay a fixed amount per month |
| course of your studies. You will need to factor in | | | | without worrying about interest rates, it is best to |
| expenses such as accommodation, living expenses, | | | | get a government student loan with fixed interest. |
| school/textbooks fees and other miscellaneous | | | | That way, it is easier to plan your financial budget. |