Saving Money on a Student Loan
There are many ways a particular individual can save money on their student loan.
While some of these are fairly obvious, some are pretty unique, and can provide a person with some real options if they are in need of financing.
Home Equity Loans To save money when purchasing a vehicle, it is sometimes wise to avoid a conventional student loan all together, and instead look to alternative methods of financing.
The home equity line of credit, or heloc, is perhaps the best alternate source of college financing because of the lower interest rates when compared to the interest rates a typical student loan exhibits.
Just be aware that if you opt for this type of financing instead of a conventional student loan that you will be taking out a note against your home, and this means that you will have to make all the necessary payments or you may lose your property.
Independent Financing While the majority of student loan borrowers get their student loans from the government, this many times is not the best option.
Independent financing can actually be a better option due to the cheaper price when compared to government financing, and should therefore be a serious consideration before one heads immediately to the government.
Zero Interest Loans Zero interest loans have become very popular over the past five years due to their supposed savings to the borrower.
While these savings are typically thought of as a constant with this type of loan, they are sometimes dubious at best.
Many times, a zero interest loan will be a substitute for a cash-back rebate.
When this is the case, it is important to run the numbers, as many cash-back rebates will provide the buyer better savings when compared to the zero interest loan.
Credit Score All students should always check their credit score before seeking financing, or completing their FAFSA.
A student's individual credit score is perhaps the most important factor lenders look at when deciding on whether to grant you a student loan.
It is also the most vital factor in determining your interest rate, and the other fees associated with your college loan.
This is why it is crucial to find out your credit score, as having a good score can save you a substantial amount of money.
Leasing a Vehicle in College Leasing a vehicle can provide a car purchaser substantial savings because car lease payments are typically lower than the payments you would have to pay for a conventional car loan.
Just be sure that if you decide to go with the lease, you don't get stuck paying an exorbitantly high down payment, as this can offset the savings you were to receive by going with the lease.
While some of these are fairly obvious, some are pretty unique, and can provide a person with some real options if they are in need of financing.
Home Equity Loans To save money when purchasing a vehicle, it is sometimes wise to avoid a conventional student loan all together, and instead look to alternative methods of financing.
The home equity line of credit, or heloc, is perhaps the best alternate source of college financing because of the lower interest rates when compared to the interest rates a typical student loan exhibits.
Just be aware that if you opt for this type of financing instead of a conventional student loan that you will be taking out a note against your home, and this means that you will have to make all the necessary payments or you may lose your property.
Independent Financing While the majority of student loan borrowers get their student loans from the government, this many times is not the best option.
Independent financing can actually be a better option due to the cheaper price when compared to government financing, and should therefore be a serious consideration before one heads immediately to the government.
Zero Interest Loans Zero interest loans have become very popular over the past five years due to their supposed savings to the borrower.
While these savings are typically thought of as a constant with this type of loan, they are sometimes dubious at best.
Many times, a zero interest loan will be a substitute for a cash-back rebate.
When this is the case, it is important to run the numbers, as many cash-back rebates will provide the buyer better savings when compared to the zero interest loan.
Credit Score All students should always check their credit score before seeking financing, or completing their FAFSA.
A student's individual credit score is perhaps the most important factor lenders look at when deciding on whether to grant you a student loan.
It is also the most vital factor in determining your interest rate, and the other fees associated with your college loan.
This is why it is crucial to find out your credit score, as having a good score can save you a substantial amount of money.
Leasing a Vehicle in College Leasing a vehicle can provide a car purchaser substantial savings because car lease payments are typically lower than the payments you would have to pay for a conventional car loan.
Just be sure that if you decide to go with the lease, you don't get stuck paying an exorbitantly high down payment, as this can offset the savings you were to receive by going with the lease.
