A Student Card or Student Loan

credit cards

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A Student Credit Card or College Student Loan

If you are considering a student loan while also considering a student credit card, educate yourself as much as possible on all your student aid options. Before you consider a student loan to pay for your school, you should have your mindset to borrow as little as possible (this is where student credit cards have an advantage). The first rule of thumb is to remember, the less you borrow now, the less you have to pay back after your graduate. You will need to fill out the FAFSA, Free Application for Federal Student Aid, in order to qualify for Federal aid and loans. You might even get some free money to help pay for college tuition as well.

If you can get by with federal aid and have enough scholarships, you might be lucky enough to not have to worry about any student loans or student credit cards. However, if you do need to borrow money, there are two types of Federal Stafford Loans available; unsubsidized and subsidized Federal Stafford Loans that can be available to help pay for your college tuition. Federal Stafford Loans are student loans offered by the government specifically by the department of education. They offer low interest rates for anyone applying for them. Overseas students are eligible as well though on a case-by-case basis. One you have to pay back and the other one you do not have to pay back.

There are also Stafford student loans offered by private banks and financial institutions. However, these Stafford loans are offered through the federal family education program. In a sense, these loans are still from the government and usually offered at lower interest rates than federal Stafford loans.

If for whatever reason the federal Stafford loans are not an option then you might have to search for private student loans to help pay for your college expenses. Your best bet is to at least four local banks and to see what their options are. You will want to compare their interest rates, fees, and terms are to compare them properly. Then pick the one that you want to help pay for your school expenses. Be sure to read the loan agreement in full with a parent. Loan agreements are not all the same and some are a lot friendlier to the student than other loan agreements are. Not everyone qualifies for subsidized federal Stafford loans and you may need to check with your school for the requirements in your area. If you do not qualify then the private student loan is another alternative for paying for college. Student credit cards come in handy for smaller school expenses and are excellent for emergencies.

FIND credit info and a selection of student credit cards for comparison at www.StudentCreditCards.com

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Student credit cards.com @ January 7, 2009