Funding your college degree is never an easy road to take. The expenses of higher education are rising day by day and students all over the world are wishing to pursue their desired subject in top rated universities. Due to the high demand, many companies, federal and private, have been offering students with staggering amounts of loans. Many student loans are based upon credit scores of the particular student enrolled. For instance, a student pursuing his degree with the help of a loan must stay focused on achieving considerably competitive grades to making the loan worth it and to maintain a healthy credit score. But there are certain factors to look out for before getting issued with a loan. Paying a loan back is a great responsibility that not many are prepared for after graduating, so it is better to be aware of the countless v variables and terms before taking a loan.

  1. FEDERAL OR PRIVATE: There are two types of lenders, federal and private. The federal companies are the ones which are directly connected to the government and most of the time have a fixed rate of interest. There are also private loans with lower rates of interest, but it is recommended to get funded by an authorized government body as the terms often come with much stronger guidelines.
  2. TIME OF REPAYMENT: The timeline of repayment often starts after graduation. The longer you extend your time of repayment, the more interest can be imposed on your principal amount. Paying back the loan within a shorter amount of time will amount to lesser interest even though the partial amounts may seem to be hefty. It is always wiser to pay back your loan in a timely manner
  3. KNOWING THE GRACE PERIOD: The time allotted to you after your graduation before you start repayment is often considered your grace period. The grace period varies in different companies. Consider your grace period to be the time you have to search for a career within your respected field to repay back your loans. Waiting for the whole grace period is not compulsory. Starting the necessary steps towards repayment may waive off some of the amounts which are otherwise imposed as interest. 
  4. AVAILABILITY OF DEFERMENT AND FORBEARANCE: Forbearance is the process by which you can place a special request in the middle of your repayment process by lowering the amount of payment. This is done when you have been hit with a sudden financial issue or unexpected financial responsibility. Deferment is the process of stopping your payment procedure for a period of time with a special permission from the government. Though these are temporary relieves, they could add to your initial interest rate.
  5. REFINANCING AND CONSOLIDATION: Consolidation is the process by which all the loans taken by you will be added up and the interest rate will be set according to the amount. On the other hand, refinancing is the process of issuing a new loan at a lesser rate of interest in order to pay back the principal. It is important to have adequate knowledge about all the factors before taking a loan.