Introduction
One of the most important decisions you can
make in your life is how to pay for your education. Education as you may know is a very big thing
for all of us. It is the key to our success. But, oftentimes this “big thing” is ignored
because of financial problems. Thanks to
some schools and institutions out there that financing your education can now
be made possible. However, just as you
investigate which schools have the best programs for you; it is still necessary
that you gather information about how best to finance your education and your
future.
Invest
While You Can, But Be Careful!
It is often said that your education is a
major investment in yourself. It is an
investment of both time and money. You
may be spending your limited resources now in the hope that you will realize a
somewhat positive outcome on your investment in the future. It is best that you consider the time as well
as money you will invest in your education, but along with this, the personal
and professional goals you’ve set for yourself must also be given
attention. Then, it is now time to make
the best investment you can. There are
some lending companies or persons you know who will support you where you can
borrow even just the minimum amount necessary to fulfill your education
aims. It is through this way that you
will realize your financial and career goals as it maximizes the net return on
your investment.
Perhaps it is also necessary that you consider
some preparations for the financial aspects of your school, just as you are
preparing for admission to and enrollment in the school of your desire. Many experts often say that even if your
parents may be willing to carry your financial paperwork or any financial
burdens there may be while you are in school, it is still best that you
understand it too and become at least an equal participant in financing your
education. In case you don’t, you may
find that financing your education can sometimes become overly confusing and
complicated. Note that while you are in school and even
after you left, you will be the one signing the promissory notes for any loans
you borrow in order to finance your education.
This just implies that you yourself will be legally responsible for your
loans. Thus, understanding the terms and
conditions of the loans you borrow will help you get out from any problem
during the repayment period.
Questions
to Ask Before Your Borrow
Before you borrow, it is necessary that you
get answers to the most possible, important questions as you plan the financing
of your education. The necessary
questions to consider are the following:
- What should
I be doing now to get ready for meeting the cost of my education?
- Are there
eligibility requirements that I must meet in order for me to obtain
support for my degree? If so, what
are they?
- What
specific financing alternatives or programs are available to me at the
school where I plan to apply?
- How to
apply for financial support and what applications are needed?
- Is there a
right time to apply for financial aid?
When should it be and what are the application deadlines?
- Will my
parents be expected to provide any of their financial information or
contribute to the cost of my education?
- What they
will do with the information I and my parents provide?
- What
necessary and unnecessary points should I know about the assistance I am
offered like student loans, grants, or work study?
- Is there
any move that I can take to lessen the amount I have to borrow, yet still
attend the school of my choice?
- What do I
need to consider or do once I arrive on campus to minimize how much I
borrow?
- What
choices will I get for working while attaining my degree?
- What
possible impacts will the loans I borrow have on me after I graduated from
college?
As you may notice, some of the above
mentioned questions are general. They
apply to any school you might attend.
However, others are more specific to the programs, policies and
procedures of every school you may be considering. So, what is best to do with these questions
aside from seeking for answers is to evaluate these issues as you explore your
financial options, in spite of where you plan to attend school. It is somehow worthy to note that financing
your education requires a collaboration involving yourself, your family, as
well as the school you attend. Your
lender may also play a great part on it.
Answering such questions should provide you the information you will
need to make well-informed choices about how to finance your education, other
than how to make the most of your education investment.
Where
to Seek for Answers?
One of your most important resources to use
in answering the above mentioned questions is probably the financial aid
administrators at the schools you are considering. However, there are also some consult
publications from funding organizations out there where you can seek for
answers. Examples of them could be the state
governments, lenders, and scholarship granting organizations. Several financial aid guidebooks are also
available today from your local bookstore.
Perhaps another valuable and updated source
of answers to such questions is the Internet.
As you may know, many schools today have their own websites, which often
cover information about the financial aid.
Most of the lenders and other funding organizations even have websites
as well. Typically, they offer information
about financing your degree, the importance of good credit, managing your
student loans while in school, and even repaying your student loans. There are also some interactive calculators
online these days to help you plan your in-school and out-school budgets. These calculators are even useful when it
comes to projecting the cost of your student loans.
Lastly,
several websites that have been established by government agencies and other
organizations to aid students with financing their education are now
accessible. As often said, they may be a
good place to start your search.
How Much Should You Borrow?
So you’ve found answers to those questions,
do you? If so, it is necessary to note
that before you place and strike your pen on any promissory notes, you should
first take an organized step and identify how much you will really need to
borrow.
There are actually several factors
associated with the dollar amount you should borrow. Usually, the amount will greatly depend on
the cost of attendance as established by your school; on the student loan
limits established by the federal government and other student loan lenders; on
your outstanding financial commitments like car loans or mortgages; other
resources you may have such as savings accounts; and on the amount of the debt
you can afford to repay once you leave school.
Also note that the sum of these parts equals an educated estimate of
your student loan amount.
Factors
to Consider for Borrowing
Under the accepted standards of borrowing
student loans, it is stressed that you can borrow up to the cost of attendance,
as determined by your school, less other financial assistance you might be
receiving. Other financial assistance
refers to grants, work-study, and scholarships. And, the cost of attendance typically
involves tuition, books, fees, room and board, and other miscellaneous living
expenses.
Also, the cost of attendance as determined
by your school has figures that are meant to apply to a wide group of
students. Oftentimes, you may not need
to borrow as much as your school allows.
Note that it is best to borrow the minimum amount possible so that you
can lessen your overall financial obligation later. Nevertheless, if you find that you really
need a student loan amount that is more than the school has allotted, you
actually have the right to appeal the decision.
But, this is permitted as long as you do not surpass the maximum amount
as established and maintained by the federal regulations.
If you prefer to consider borrowing student
loans to finance your education, just expect that some of the lenders these
days have borrowing limits placed on student loans. For instance, the federal government places annual
and aggregate borrowing restrictions on federal student loans, and the
aggregate limit is usually the total amount that every student can borrow in
the span of his or her education. Given
this fact, it is then necessary to examine and evaluate the terms of every loan
you plan to take on for the annual and aggregate loan restrictions.
Aside from that, carefully and honestly
assess your current financial status, including any financial commitments you
have made before entering the school of your own choice. Understanding the repayment obligations of
every commitment you’ve made is the key here.
Note that over time you will be responsible for these prior obligations
in addition to any education debt you take on, and your education loans are not
given to cover these prior obligations you have.
Finally, consider the realistic
determination of your future income. You
can perform some research on the current job market and start salaries in the
area you plan to pursue. Just note that
you will be paying for your education with your future income. So, when choosing a student loan program, be
sure to do some investigations on the loans that offer you alternative
repayment plans which can assist you in managing your payments, especially
early on in your own career.
Conclusion
As mentioned, student loans can be a
valuable investment, but they are also an important obligation that needs to be
considered. In order for you to ensure a
successful student loan repayment, you must make sure that you approach
borrowing carefully and thoughtfully.
This must also be coupled with being realistic in your own budget as
well as salary projections.