Choosing to continue your education is a great decision to make. It can help you pursue your desired career and make getting a job much easier. However, going to college can cost a lot of money.
Between paying for classes, paying for books and other essential supplies, you can find yourself struggling to pay for everything and still have enough cash left over for other essentials such as food, gas, and paying your bills.
Luckily, there are loans available for students that help them meet their financial needs while being able to continue their education. UpMoney has given us the following advice:
How much can you get?
There are a variety of factors that determine how much you can get. What year you are in school will affect how much you can get. Another factor is what type of loan you are getting. There are two types of loans: federal and private loans.
The difference between private and federal loans is that federal loans are offered by the government whereas private loans are given to you by a private lender. Each one has different amounts that you can borrow as well as different interest rates and the schedule of repayment.
Typically though, for a graduate student, they can borrow around £20,000 annually and usually a total of £138,000. There are methods to learn how to pay off student loans over 100K so that you’re not crippled by the debt.
Keep in mind, if you are attending medical school, you can borrow much more. Most medical students can borrow over £200,000 by the time they are finished with school.
Direct subsidized loans vs unsubsidized loans
You also have Direct subsidized loans and unsubsidized loans in the mix. What separates these two is that with subsidized loans, you don’t have to worry about paying for the interest while you are in school as the government will do this for you.
With unsubsidized loans, interest will accrue while you are still in school. The student doesn’t have to worry about paying for this while in school although it is recommended that they do so if they can. As a student, you aren’t required to pay on the interest until 6 months after graduation.
Both Direct subsidized and unsubsidized loans need to be paid off, but it is recommended that students should try to make payments on the unsubsidized loan first due to the fact that the student has to pay the interest.
Should I borrow as much as I can?
If you don’t need to, then no. This is not free money you are being given. You have to pay this back at some point in the future so the more you borrowed, the more you have to pay back. That doesn’t mean you shouldn’t borrow any money.
This money is designed for students who need it because they may not be able to afford school and take care of themselves. Or if they still live with their parents, their parent’s income may not be enough to support the child and their education. So if you truly do need some money, borrow it. Just try to pay it back as soon as you can.
Interesting related article: “What is a Student Loan?“