How Do I Manage My Debt?

260 0

Most families don’t have the capacity to pay for the top league private schools, as they charge a huge amount of money. Therefore, the parents don’t have an option, but take loans and go into debt.

Stafford and PLUS loans are most common; in this section you will know about the best loans available.

Before we proceed and learn about the ways of managing the loans. Let us learn-

What is the maximum amount of financial aid a student can receive?

Now, we come to the million-dollar question, that is commonly asked by almost all students who are planning to get higher education.

Undoubtedly, the financial aid received by each student will vary, depending on certain parameters.

However, the golden rule states that the top quarter of the applicants receive the highest possible financial aid.

For the students who are in great need of financial aid, we advise you to not waste your time by applying to a college, where you fall in the bottom half of the applicants list.

But Why?

The likelihood of getting a good amount of financial aid for the bottom 50 percent of the applicants is remote. These applicants may get financial aid, but it will be too little in comparison to their needs.

The amount of financial aid a student will get depends on various options available, one of the preferred option is taking loans. Before you apply for financial aid, you need figure out the ways through which you can pay off the money, with grants being the only exception where you don’t have to worry at all.

In case you opt for the student loan, you have to pay off the loan in monthly instalments, and continue paying till the term period is over. It is always advisable to take the minimum loan paying term, preferably 10 years, because a longer is the term, the more money you have to pay.

We do not discourage student loans at all, because they have their own advantages-

  • They increase your credit rating, and improve your chances of getting loans in future.
  • The loans indirectly give the student a responsibility to study hard and get a better job.
In this article

Join the Conversation