4 Ways On How To Take Out A Student Loan For College

Are you thinking of going to college? Or, maybe you have a child who has reached college-age. Whatever the case may be, you will quickly discover that college is expensive. Even if you have made efforts to save for this expense, you may find that you cannot cover all of it out of pocket.

If you find yourself in this situation, don’t panic. You can always take out a loan to pay for college costs. In fact, there are at least four different ways you can secure the money you need to pay for education expenses.

Option #1: Take Out a Title Loan

Do you own a vehicle, preferably one with a high dollar value? If so, then you may be able to cover some college costs by taking out a car title loan.

These loans are available to anyone who owns a vehicle. Most lenders will work with you regardless of credit history, so this is a great option if you don’t have good credit.

With this type of loan, you will use your vehicle title as collateral. As long as you meet the terms of the agreement and pay off the loan as required, you will have the money you need while retaining use of your vehicle and, once the loan is satisfied, full ownership of the vehicle as well.

This option is a solid choice when you need money for college quickly.

Option #2: Fill Out the FAFSA

The Free Application for Federal Student Aid, commonly known as the FAFSA, is a federal form that can show you any and all financial aid to which you are entitled. Filling out this form is a bit of a hassle, but it’s definitely worth your time and effort.

After you have filled it out, you will get information on loans, grants, and even scholarships for which you are eligible, all of which can make a huge dent in your college costs. Some people even qualify to have all of their college expenses covered by aid.

While most loans will have to be paid back in full, some forms of aid you’ll discover via this helpful form are completely free and do not require payback, so you may only have to take out a loan or loans as a last resort and/or to cover those final expenses.

Option #3: Take Out a Direct Subsidized Loan

Another type of loan that you may want to try for is a direct subsidized loan. These are loans that come from the United States Department of Education.

To qualify, you need to be going for an undergraduate degree, and you must demonstrate financial need according to eligibility requirements set in place by the organization. 

How much you will be able to borrow will depend on the school that you choose, so if you go for this type of loan, try and choose a school that allows you to borrow the largest amount possible. You should borrow as much as possible via this loan type since the interest is paid for by the government during the time that you are in school and for the first few months after you graduate.

Option #4: Private Student Loans

One final option to consider is taking out a private student loan. Many organizations offer these types of loans, such as banks, credit unions, and more. In most cases, though, you will need good or at least decent credit in order to qualify for one.

However, if you do qualify,  it’s important to understand that, while there are many good private lenders out there, there are also shady ones. Thus, you must exercise care and caution and do extensive research before agreeing to work with a particular private lender.

Always shop around for the best interest rates and terms possible so that your private loan will help propel you to success, rather than being a detriment toward it.

As you can see, you do have many options for securing college loans and general funding. These are actually just a few of the many. As long as you are careful and choose the best option or options to meet your needs and educational goals, your experience with student loans should be a positive and helpful one.