If
you have been considering a student loan or maybe you were looking to
get a student loan in the future, then here's a few things you need to
do. The world is going through a recession and things have changed.
Therefore, you need to take one more look at your plans, because
things are different now.
Dont even consider a consolidation loan
now, because lenders who used to provide these loans have fled the
market. If you still need to consolidate your loans then you will have
to do so through the federal government.
Here's one more thing you need to know.
Private student loans have become harder to get plus they have
variable rate and you need a higher credit score plus a co-signer
also.
And if you think you will somehow qualify
for the private student loans, think again. The economy may recover in
a few years and then the interest rates are going to shoot up. That's
why it is better to go for fixed rates instead of variable ones. The
fixed one will remain low even when the economy recovers
And now, let me give you a few ideas on
how much to borrow. You certainly will have to do a lot of thinking
about your future plans and goals and what kind of a job you will be
doing after you graduate. So, you should make sure that when you get a
job, you dont want to lose 90% of your income in repaying your debt.
The point is - You shouldnt borrow more
than what you can repay in your first year after your graduation. You
dont want to keep making payments for student loans, your whole life.
There are chances that you may have to get loans for a car or a house
or anything else that you might need.