Congrats, you are having your diploma and have to go on your own and finance your future studies alone, without parents’ or other family members’ help. Choosing the student loan option can be a solution for you. Before making any decision, here are several tips on how to choose the best and the right bank
for student loan. When choosing a student loan, goals remain the same: to help students in paying university tuition, documents and books that are necessary as well as living expenses.
Get prepared in advance
Every borrower often expects a clear student loans’ inventory. And they are absolutely right. A well-organized preparation is vital for this process. If you are planning this option, you have to lay the groundwork for a bank loan. You do not have to wait until after the graduation to start all processes. First then, search for offers that are available online, on Yearbook or everywhere you can come across further details about student loans (legally). After that, keep all bank offers that are interesting and advantageous for you. Put them in a secure place. Later on, you can recall for these contact information, websites, log-in information, balance and interest rate on the loan you are interested in. Keep them preciously in a safe place to avoid re-starting a new search that can be obviously tiring.
This is undoubtedly the fact that you have to be very careful about. With the record that you have previously saved, try to make a decision on which bank offers attracts you more. Compare what repayment options they are proposing. Is the lender offering Income-Based Repayment (IBR), Income-Contingent Repayment (ICR) or Pay-As-You-Earn? Let’s note here that the two first options extend the payment period to 25 years giving you enough time to repay the loan. The Pay-As-You-Earn, for
its turn is a 20-year repayment period. Use your calculator if needed be and
find out which option is matching best your needs and especially your financial situation (the current amount available on bank account.
Related to this same repayment, be sure that there is an option allowing automatic deduction from your bank account. Indeed, you will have to sign in an automatic debit. It just has to
be set up once and that is all. This process is making sure that you have the
repayment deduced from the credit in bank. You also have to know that some
lenders are offering a kind of interest rate reduction when on-time payments are made through their automatic debit plans. This can be of a huge advantage for students. Getting prepared few months in advance ensures students to make search and decisions wisely. Repayment options are to be taken into account. Last but not least, the bank offering an option to directly deduce the amount on students’ accounts can bring more advantages from students.