In case someone is a college student in debt, he/she needs not to worry as there is a lot of help available. Student loan is the best investment which can be made but one must be able to pay back the loan. If someone wants that he does not become a person who would be paying back the student loan at the time when his own children will start getting education. The first thing to be considered is that one must analyze, how much loan is needed because getting extra loan than needed can create problems. One has to live within the means when he takes loan.
One other important thing to be considered is that one does not need to apply for private student loan rather apply for Federal student Aid for which a FAFSA form is needed to be filled at www.fafsa.ed.gov. this will let the person know about what type of loan he/she qualifies for and this may happen that the does not require to take any loan and qualifies for grant.
If someone qualifies for the grant but feels that the grant will not be enough for the expenses then there are other options available for Federal Stafford Loans or Federal Perkins Loans. Federal loans offer reasonable interest rates as compared to those of private loans and they are to paid in 6 months after the college is over and on some loans the government pays subsidy during college time.
When the time for paying the debt back comes, one should firstly pay minimum towards individual debt. After that with the money left over, the debt with highest interest rate should be paid. After paying all the debt, the next highest interest rate must be paid. In this way, the money will be spent in a better way to pay all the debt timely and prevent you from any mental stress.
In addition, one should try to save money while being in school to pay the debt. One has the idea about the tuition fee which is normally fixed but textbooks expense may vary and the traditional way was to sell the older books. Now another option available is buying Online Textbooks which save cost as compared to the printed version of books.
Sound credit history is one important thing and one should start considering it in his college life as when he/she will have any plan to buy a house or car, the credit is going to help a lot. The best way is to buy a credit card. Credit card should be used wisely otherwise it may lead someone to bankruptcy but if someone uses it carefully, this would help in having good credit history which is beneficial in long run.
The best way to use the credit card in a better way to prevent you from high interest rates is to use the credit card on regular basis and make small purchases and pay the credit for that at the end of each month. This will not create any problem as it is better to make purchases using credit card to a limit which can be easily paid.
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