An education loan is a form of loan designed to cover the costs associated with higher education. Repayment usually occurs once one has graduated and found employment; some loans may even be supported by government subsidies; but as always it pays to do your research before signing any loan agreements!
Students can borrow money to cover tuition and book costs as well as other expenses, with education loans often offering low interest rates that can be paid back with income. Loans should only ever be considered as an last resort option and students should look into other sources of funding such as scholarships and grants first.
Many lenders offer student loan consolidation services to assist borrowers in managing their debt by consolidating federal and private education loans into one direct consolidation loan. This may convert your federal education loans to private loans and eliminate eligibility for certain federal programs such as loan forgiveness and repayment assistance.
Before selecting a lender, it is essential to compare both rates and terms for every individual loan. While certain lenders may offer lower interest rates than others, they may provide less flexible loan terms or have additional fees attached.
Be sure to ask your lender whether there is a deferment or forbearance period in case you cannot make payments, giving more time for finding solutions without incurring extra costs or additional interest payments.
Another consideration when applying for education loans is that this loan will likely be the first major credit item on your report. Missed payments or default can have an extremely damaging impact on your score and make obtaining other forms of loans such as car or home loans much more challenging in future.
ISL Education Lending offers both cosigned and uncosigned undergraduate loans with competitive interest rates and no origination fees at highly competitive interest rates, plus no origination fees. You can easily apply online with no credit pull and receive personalized rate offers within minutes – plus interest-only or fixed $25 monthly payments while in school; payments deferred until six months post graduation! Parents can cosign this loan as long as they meet specific financial criteria.