The cost of attending college has been rising steadily in recent years. If you are a parent planning to help your child pay for college, do your homework before choosing a lender. Following these steps can make the fast-approaching decision more manageable:
-Consider federal loans first: Federal loans are typically cheaper and offer more flexible repayment options, such as income-driven repayment plans. To qualify, fill out the Free Application for Federal Student Aid, or FASFA.
-Look at private student loan options: Consider private student loans when federal aid doesn't cover the full cost of attending college. Borrowers with top-notch credit may even qualify for lower interest rates than with federal loans.
-Check you credit score: A good credit score and low debt can get you lower interest rates on private student loans.
-Shop around for the best offer: When comparing loan options consider the interest rate, repayment terms and hardship options.
Review top-rated lenders and expert insights at U.S. News to help you make the right decision.
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