Smart Borrowing
Everyone wants to be smart about borrowing for college. Here’s how.
Each year, the cost of college keeps going in one direction. Up. And that’s especially
true for private schools. We’re not just talking tuition or room and board. Everything
from books and lab fees to a semester studying abroad comes with a higher price
tag. If you’re like most of us who weren’t born rich, what do you do? You do what
you have to do – you borrow. But, most important of all, you borrow smart.
What does it mean to borrow smart? Here are a few helpful tips.
Start Early
The sooner you start thinking about college and how much it costs, the better prepared
you can be. We suggest students and their parents talk about things like all the
costs of going to college, who will pay for what and, of course, how you’ll pay
for it. By starting early, you’ll have fewer surprises and more answers.
Estimate Your Share
Through lack of communication, students and parents often have different ideas of
how much each will contribute to paying for college. Because college costs include
much more than tuition and room and board, it’s important to decide beforehand who
will be responsible for what.
Federal Aid First
Smart borrowers take advantage of all the financial options available to them. The
first avenues to explore are scholarships, grants and low-interest federal loans.
Once those are exhausted, then you should consider a private loan.
Filling the Gap
Chances are, there will be a gap between what you have and what you still need to
pay. That's where a private student loan like a Monticello Loan can help. Deciding just how much you will
need and borrowing only that amount can impact how much you will pay. You should
also consider getting a parent or friend to co-sign to get the best possible terms.
Borrowing Smart
Doing your homework before choosing a private education loan can save you money.
Make sure the terms are clear. Be aware that interest rates can change and be sure
you can afford the monthly payments. Also, find out if you will be penalized for
early payment or if you can reduce costs by electronic payment.
These borrowing tips merely scratch the surface. To learn more about becoming a
smart borrower and using all the tools for making smarter decisions about paying
for college, visit www.smartborrowing.com
