May 11, 2021

How to Take Out a Student Loan

Chipper Help

Going to college is exciting. It’s probably the first time you’re leaving home for a long period of time and the first time you’re somewhat fully independent. However, college tuition doesn’t come cheap, and if you’re just like most people, you’re probably considering applying for a student loan. In this post, we’ll list down a few things you need to know on how to take out a student loan.

The first thing you need to know is what your student loan options are and how much you’ll need. Remember that tuition is not the only thing that you’ll need money for — you should also factor in books and school supplies, and of course your living condition while you’re away in college. If you plan on being a full-time student, factor in your expenses.

There are two basic loan options available for you out there: the federal student loan and the private student loan.

Federal Student Loans

Federal student loans are issued by the U.S. Department of Education. You can apply for this loan by filling out the FAFSA (Free Application for Federal Student Aid). This type of student loan often has low interest rates and won’t require a credit check or a cosigner. The best part is, federal student loans have the potential for “loan forgiveness” wherein any remaining balance is waived after you’ve made a certain number of payments (but take note that this does not happen in every instance).

This student loan is granted on a first come, first served basis, so it’s important to fill up this form as soon as it becomes available on October 1. Each school and state will have a set deadline on FAFSA submission, so it’s better to get yours in early.

The Department of Education will determine the types of loans you’re eligible for and the amount of money you can borrow based on the information you entered at FAFSA.

Colleges mail financial aid offers at the same time they mail acceptance letters. If you get accepted to more than one college, take a look at the loan options you’ve received and how much they are. They tend to differ for every school. If you have any questions, it’s best to reach out to your school’s financial aid office.

Private Student Loans

If you’re thinking of going the private route, private student loans are available and issued by banks and credit unions. One of the advantages of applying for a private student loan is that it’s not on a need basis, meaning you have the potential of borrowing a higher amount, and you’ll get funding pretty quickly once you’re approved. Interest rates can be high, though, so it’s important that you review the different loan options.

Eligibility for private student loans is credit-based. You need to have a cosigner who has good credit because, as a student, you probably have not had the opportunity to build a good credit score yet.

Should You Go the Federal or Private Route?

A good rule of thumb is to only apply for private student loans once you’ve exhausted all your federal student loan options first. After all, you’ll get approved quicker since they don’t require you to have a cosigner, they have lower interest rates, and the payment options are more lenient.

Before applying for student loans, see if you can get access to free education first by checking if you qualify for scholarships and grants. Because although student loans are extremely helpful, they still need to be paid back. It’s worth a shot, and there’s nothing wrong in trying your luck.

Use Chipper for Lower Payments

Chipper can help you find a student loan repayment plan that actually fits into your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can game changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.

Use Chipper for The Best Path to Forgiveness

Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.

Use Chipper for Round-Ups

Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.

Use Chipper for Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.

Use Chipper for Teacher Loan Forgiveness (TLF)

The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.

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