Student loan loans tips Posted on 2010-05-21 |

The cost of going to college is getting more expensive each year and many young adults are taking out student loans to pay for their education. Before you sign any papers for a student loan, here are some quick tips to keep in mind:

Complete the Free Application for Student Aid (FAFSA).
Completing a FAFSA helps determine for which federal assistance programs you qualify. Some federal assistance programs, such as grants, give money that does not need to be repaid to students to pay for college, while federally guaranteed loans are low interest rate loans that must be repaid. It is wise to borrow as much of your needed amount from federal sources first before borrowing from private lenders. Learn about the benefits of federal student loans

Shop around and compare loan features.
If you need to take out a private loan, compare agreements offered by lenders to see which one best fits your needs. Questions to ask include:

• What is the interest rate?
• How often will the interest rate change?
• When do repayments begin?