As students you must be pretty much confused about the modalities of obtaining a Student Loan. It is but natural. It is also important to remember the fact that the consequences of choosing a bad loan deal is sure to follow, even if it is a first time event. Such consequences are long lasting in the sense your entire future is under risk of falling prey to heavy liabilities and cost.

Loan advice for first timers

• It is important that you know the market condition very well. More than 250,000 students will have their loan applications turned down by federal agencies; many parents are likely to have their PLUS Loan applications rejected if they have a foreclosure in the previous 5 years; a higher credit score is expected and hence not all can qualify for loan program.

• As you all know, apart from need based programs, everything else needs a credit a good credit score to qualify. As students you would hardly have a credit history or even if you have one it would be very thin. Hence, you can apply for a credit card along with your parent’s signature or apply for a loan co signed by your parents. Remember by co signing you better your chances of getting a Student Loan and also that the cosigner becomes equally responsible for the debt. Remember to choose somebody who has a credit score of 700 or more points.
• You should always remember to approach federal loan agency for financial support. You are eligible for $31,500 to $57,500 from Stafford Loan program. If your parents do not qualify for PLUS loans then your loan limit increases. These loans are comparatively cheaper and have flexible repayment schedules.
• It is important for you to perform enough research in the matter and compare deals. Beware of advertised rates, they are generally meant for students with very good credit score. Compare various deals and ensure your payment is in the expected way. The longer the term the lesser you pay per month and more interest is paid over the life time of the debt.