| Picking a college student loan can be rather a | | | | have the lender make a lot of money. |
| stressful time. There are a lot of different options, so | | | | 3. Find out if the lender will sell your loan. Many of the |
| many different terms and often some rather | | | | smaller private lenders will sell your loan to someone |
| attractive offers. However it is very important to | | | | else, leaving you with someone other than the original |
| remember that many of the student loans that | | | | lender to deal with and possibly resulting in different |
| sound too good to be true, generally are just that. | | | | terms and interest rates. A reputable lender will put |
| Each year thousands of students enter into student | | | | information about the selling of the loan in writing and |
| loans which looked to be a great deal, but as they | | | | will also guarantee that the original terms will continue |
| did not read the small print and they did not fully | | | | to apply. |
| understand the terms and conditions of the student | | | | 4. Your credit score will affect the interest rate as |
| loan agreement, they have ended up having to pay | | | | well as the amount of money you are able to |
| thousands of dollars in extra fees and interest over | | | | borrow. Be very weary of lenders that promise low |
| the term of the loan. | | | | rates even if you have bad credit or a low credit |
| The key points to look for in college loans for | | | | score. They typically are adding in additional costs. |
| students, especially with education loans or private | | | | fees or other services that you will end up paying for |
| schools include: | | | | in the long run. These costs may be higher than if |
| 1. College loans for students that promise you money | | | | you had originally had a higher interest rate. |
| for non-educational items or that advise they have a | | | | While it may be tempting to look at some of these |
| loan that uses a loophole to get around the policies. | | | | newer companies offering college student loans, it is |
| This is both illegal and against the Higher Education | | | | still a good idea to stick with companies that have a |
| Act policies and usually these types of scams are | | | | proven track record and that have a history of |
| exposed, often too late for unsuspecting students. | | | | working with students in a fair and responsible |
| 2. Vague information on the rate of interest of of | | | | manner. Ensure you always research your student |
| the loan and how the interest rate will be calculated | | | | loan thoroughly before taking out the loan. Always |
| over the term of the loan. If at all possible look at | | | | get at least 3 different loan agreements from |
| loans that allow you to fix the interest rate if the | | | | student loan companies so you can compare interest |
| rate is competitive at the time of the loan. Not | | | | rates and terms to ensure you get the best deal. |
| locking in a rate can result in either a really good | | | | This is easily done over the internet, so make use of |
| option if the interest rates are more favourable to | | | | it. |
| borrowers, but it can also go the other way and | | | | |