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How To Choose A Student Loan In 2024: Which Suits You The Best?

Walter Cueva
March 6, 2022
How To Choose A Student Loan In 2024: Which Suits You The Best?

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Know every detail here on how to choose a student loan in 2024 that perfectly fits in your budget. We all have our wants and desires, it could be education, house, clothes, electrical appliances, phones, etc., but not everyone is financially capable of getting all of his/her desires or need at a particular time.

Loan application has helped many solve their financial issues, and the loans gotten by these people have helped them solve some of their financial needs. It’s important for students to weight their options and choose the best student loan as per their needs.

A loan is the lending of money by an individual, group of individuals, or an organization from a Banking License Institution, Charter Institution, or Non-Banking financial institution.

Let’s see the “Best student loans in 2024” and “How to get a student loan in 2024”.

As much as students get money from home to fulfill their financial obligations, sometimes they need financial aid to achieve their dreams in time. Financial aid helps one get out of debts or prevent one from getting into debts. Students also apply for financial aids to complete their educational program at all levels, but most of them are also curious about “How to get out of student loan debts” But first, for this time we will be knowing “How to get the best student loan.”

How To Get A Student Loan?

Some students consider the not so advisable option of “dropping out” of school because they couldn’t get enough money from parents to continue their program. If you are also thinking in this direction, here comes the good news for you to change your thought.

Do you know you can get a student loan? Yes, you can, because one of the most common loans in the U.S today is the student loan. The first question that comes to the mind of an average student is “How do I get a student loan.”

Steps Outlined To Assist You In Getting A Student Loan

1. Fill Out the FAFSA

In your quest to get a student loan, you will fill out the government’s Free Application for Federal Student Aid (FAFSA). In filling out the application form, some relevant questions will be asked by FAFSA, which includes student and parents’ income and investments, and your family has more than a child in the college at a time. FAFSA will use the information you provide to calculate your Expected Family Contribution (EFC).

The Expected Family Contribution calculated by FAFSA is the amount of money they believe you should pay out of your financial resources for college for the coming school year.

2. Check Out Your Financial Aid Offers and Compare

When filling out the Free Application for Federal Student Aid (FAFSA), the information you give will be used by the financial aid office at your college of choice to determine how much aid we should make available for you.

To determine how much aid is to be made available for you, the financial office will subtract your Expected Family Contribution (EFC) from their cost of attendance (COA). Cost of attendance includes mandatory fees, tuition, room, board, and others found on the colleges’ website.

One of the wisest things to do is bridge the gap between your EFC and the colleges’ COA. Financial aid packages may include loans, a federal Pell Grant, and paid work-study in some colleges.

The distinction between grants and loans is that you don’t need to pay back for a grant as it falls in the category of Government “exceptional financial need” while you pay back your loan with interest.

Compare award letters of colleges because in most cases, award letters of colleges differ, and ask yourself, “How much student loan can I get?” to answer your question, you need to check whether the loan is “subsidized” or “unsubsidized.”

3. Difference Between Direct Subsidized and Unsubsidized Loans

The difference between “Direct subsidized loan” and “Direct Unsubsidized” loan is while the former is like grants, meant for students with exceptional needs and the U.S Department of Education covers the interest for a certain period after graduation, the latter is available regardless of the needs of the student and interest start accruing immediately.

How To Get Out Of Student Loan Debt?

Student loans are second to only mortgages in the list of the U.S largest source of debt. In trying to eliminate this debt, it often becomes a source of infinite stress for the borrowers. But a relief to the stress you might go through is that there are solutions that can help you get out of the debts and pay off the loans effectively. Research that shows about half of federal student loan borrowers overpay. The borrowers were able to pay off their debts by figuring out some of the most effective ways about “how to get out of student loan debt.”

You need to consider some options and choose which one is best for you in getting out of debt. The following are the options to choose from:

  1. Do you want to pay off your loans quickly? This option helps reduce the total interest charges applied to your debt, but your monthly payment will be higher.
  2. Do you need lower monthly payments that work better for your budget? With this, you stay longer in loan debt but with a more affordable monthly payment.

Different Factors To Include For Types Of Loan

Other factors that determine the option to go for include the types of loan you hold, credit score, the status of your loans, employment, personal income level, and budget.

Students Loan Forgiveness 2024

Under certain circumstances, students are exempted from paying back their loans, whether full or part payment of the loan; and whenever this happens, it is known as loan forgiveness.

It is worthy of note that the loan forgiveness does not apply to private loans, but only direct federal loans qualify for this exemption. The two common ways of earning this loan forgiveness are making payments through an income-contingent payment plan for a long period or working in public service.

Statistics For Best Student Loans Of 2024

The applications for loans by students to aid their financial obligations in colleges have risen over time, and often, the federal student loans are not enough to meet the needs of the students. But it would help if you don’t push above your weight when going for the private loan option. Below are the best student loans of 2024.

LendersRatingFixed APRMax. Loan AmountMin. Credit Score
College Ave4.73.24% to 12.99% with autopayCost of attendance minus aidMid 600s
Earnest4.73.34% to 12.78% with autopayNo maximum amount650
Education Loan Finance4.63.20% to 11.99%No maximum amount680
U-fi4.53.59% to 12.37%$500,000680
Sallie Mae4.53.50% to 12.60% with autopayCost of attendance minus aidMid 600s
Ascent Funding4.53.27% to 12.16% with autopay$200,000540
Risla4.4As low as 2.99%Not disclosed680
SoFi4.33.49% to 10.95%$150,000Not disclosed
Citizens bank4.34.18% to 10.95%$150,000Not disclosed
Discover4.34.24% to 11.99%No maximumNot disclosed
LendKey4.23.99% to 8.49% with autopayCost of attendance minus aidNot disclosed
MEFA4.23.75% to 5.75%No maximumNot disclosed
Common Bond4.23.74% to 10.74% with autopay$500,000Not disclosed
EDvestinU4.13.022% to 7.723% with autopay$200,000675 with co-signer
Mpower Financing3.83.90% to 7.60%No maximumNot disclosed
Laurel Road3.83.90 to 7.60%No maximumNot disclosed

The need for students’ financial aids varies, and that’s one of the reasons a single lender might not be a good choice for everyone. So, compare choose the best student loan wisely.

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