If you are planning to join a college, there are several things you need to consider. Though a good number of students tend to be well prepared when starting college life, they later find-out that college funding is a complicated matter. Below is an interesting story about college funding.
A student joined college and was staying on-campus, received government funding, and almost everything was catered for. After two years, he moved off-campus and hence needed a job to sustain his life and more loans to pay off-campus expenses and housing. He even went to financial aid office for advice on how to obtain another funding. Though the Government funding was okay, he came to learn that the interest was higher than State student Loans. The truth is that he could have received the maximum from the Government Student Loans for a portion of the interest rate of State Loan and save some money at the end. Since he did not do that, the interest on State Loans was about 8 percent, while three Stafford Loans he took were then consolidated to 2.5 percent. By now, he is paying more money, and it will probably take him 12-years to repay the loan.
So, when researching about college loans, it is crucial to understand more about the funding and how it can help you. From the student story, if he was informed, he could have taken Stafford Loans each year, and this could have made the difference. It could have made the second funding affordable and reasonable to repay. He failed to research before obtaining the loan. The student financial aid office is established to help students know about financings and be able to choose the right ones for them. But according to the story above, the staff working in the financial aid office represents the interest of the Loan Companies and not the interests of the student. In fact, some media houses reported that the staff receives some kickbacks once they send students to the loan companies.
This article is to help you make wise decisions when choosing college funding and not to scare you. It is beneficial to learn and research about college loans before committing yourself to any particular lender. If you can talk directly to the lender rather than obtaining advice from financial aid office, it could be better. Make sure you research about the companies, know their history and find out more about the interests among other features. Unseen trust is not the right way to pick a lending company, and failing to research makes it worse. If you want to get the appropriate college funding, you need to be in control. Do not let other people decide or pick the company for you. Furthermore, it is wise to know that government loans are provided to help students gain the education they prefer. Hence, they are better than other fundings. Even though they can be hard to get depending on your case, they are the best college funding you can get. But with facts and required information, you can quickly make the right judgment.