subject: Learn More About Fixed Rate Student Loans [print this page] There are a lot of students who want to study higher education. Unfortunately, not all of them have enough money to pay for the expensive tuition fees, the books, as well as housing or dorm fees.
Fixed student loans allow such students to attend college by lending them money to cover for the expenses that they won't normally be able to pay on their own.
The borrowed money ensures that the tuition fees are being paid in full, on the premise that the borrower will eventually return the borrowed amount, plus some interest.
While this is a good solution to a student's financial problem, it is important for borrowers to be careful when applying for a fixed student loan. They come at a price, and careless borrowing of money could send a student into an inescapable debt crisis later. That being said, a student should not borrow more than the amount needed.
Fixed rate student loans have relatively low interest rates compared to other kinds of loans, but it is still recommended to check different lenders for the lowest available interest. This will also help the student learn more about lending and the mechanics of credit scores, not to mention it would cut down unneeded expenses after they graduate.
The government can offer fixed rates student loans, among them is the Federal Stafford loan. This loan lends enough money to cover the cost of college tuition, required books, as well as other living expenses. Most loans will have a FAFSA form as a requirement.
The good thing about a fixed rate student loan is the fact that payment of the interest is paid by the government, and actual repayment only starts some time after finishing the education or if the load is less than half-time.
There is also the Parent Loans for Undergraduate Students, also known as the PLUS loan. It can be used even if there is no Stafford, as much as the education cost that is not yet covered by current options.
If the borrower has multiple existing debts for a few years of education, they could be combined into a single debt, repayable within a period of up to 30 years. It is important to know that there will be a greater amount of interest for such an extended period for repayment.
There are also private fixed rate student loans; however, the interest rate is usually more than that of a federal fixed rate student loan. The borrower might also have a cosigner with a decent credit score, so they are usually considered as an alternative option.
Learn More About Fixed Rate Student Loans
By: George Nowling
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