Top 5 Features of the Best Student Loans in 2022
5 Features of the Best Student Loans
Federal student loans are a multi-billion dollar industry. In 2016, the total amount of all student loans was over $1.3 trillion.
This is a drastic increase since the 1990s which led to having the best student loans many are enjoying.
The student loan money machine started with income-based repayment (IBR) plans in the 1990s, which were developed to encourage students to borrow more money and go to graduate school. Today, there is no limit to how much you can borrow in federal student loans.
As a new graduate, you are probably looking at the mountain of student debt you’ve accumulated. I know your situation is not unique.
In fact, 1 in 4 undergraduate students will graduate with student loan debt.
A good number of them feel hopeless. They don’t know how to tackle their debt.
Nevertheless, if you have the ability to study for your degree without taking a loan, then don’t go for it. On the other hand, if you have to take a loan, then go for the best student loans out there.
As you may be aware, there are good loans and there are bad loans. Student loans offer many benefits that help students to cover their educational expenses.
The loan can be used to pay for tuition fees, books, and other school-related expenses by the student who is enrolled in a college, university, or vocational school.
The loan can also be used to pay for other expenses such as housing, food, and transportation. The interest rate on the loan varies from one lender to another. Yes, there are many benefits, but how do you acquire the best student loans?
Well, in this article, we will explore five great features of the best student loans that will help you avoid falling into bad loans that you might end up being unable to pay. So, let’s get started.
1: Have Low Interest Rates
The various student loans and their associated interest rates can be confusing, especially when it comes time to pay off student loans.
With so many different types of loans and interest rates, you might find yourself wondering which is the best student loan you have, or what the interest rate is on it.
Before you enter into such a situation, always do your research. I know it can overwhelming but trust me, it will save you a whole lot of stress. The best student loan will not burden you with huge interest rates.
It’s no secret that student loans are an increasingly difficult burden to bear for both new and aspiring college graduates. Student loan debt levels continue to climb, and those looking to minimize their overall student loan burden might find themselves wondering where they can go to get a lower interest rate.
You can get a lower interest rate in a number of ways, but you have to make the right choice when it comes time to consolidate.
One wrong move into taking a bad loan can result in future consequences that may end you incapacitated financially.
Most governments that care for their undergraduates usually offer student loans at very low-interest rates.
However, if you are taking your loan from SACCOs and private banks, you might end up paying double the loan because of their high-interest rates. Always remember, the best student loan has a low-interest rate.
The best student loan should be deposited into your account before the semester commences or before the exams start. I mean, it doesn’t make sense if you receive your loan after the exam period has passed.
In most universities, you cannot sit for your exam if you have a balance. In other words, you should have a nil balance for you to sit for the exam. The best student loan will be in your account before that exam period comes.
A bad loan on the other side is not timely; it comes when you don’t need it most. A good loan should be deposited into your account especially when the semester is kicking off and before the exams.
According to the Department of Education, 7.1 million students in the USA borrowed $107 billion in federal loans in 2013–2014 at an average interest rate of 4.66%.
Of course, those numbers are nothing new; the cost of college has been rising for decades and the loan situation is no exception.
Irrespective of the situation, aim at striking a good balance so that you will not be out of school or taking retakes and deferment for not sitting for the exam.