Apply for Student Loans

I hope you enjoy reading this blog post.
if you want to learn how I ended up in front of you, click here.

If you are planning to use financial aid to pay for your college education, there is a good chance you are considering applying for student loans. Unlike grants and scholarships, Loans are usually included in a financial aid package and must be repaid with interest. No two loans are the same, so it is important that you understand the basics of borrowing money before you apply. To start, all loans include three parts: the interest rate, security, and term.

Next:

Hey, I'm Joshua T. Osborne

In 2015, I said goodbye to 16-hour days and hauling boxes up and down stairs for a living (I was a mover). I became a full-time entrepreneur, and I made my money by helping business owners make money.

They had a need, and because of Virtual Tool Booths., I could fill it. Through the methods taught by my all-time favorite course and mentor, I created a 6-figure business in roughly 6 months. I could retire today (at 37) and never have to worry about money ever again.

Because of Virtual Tool Booths., I was able to quit my job, work online with flexible hours, and move to the mountains (Colorado Springs if you’re wondering)...all while helping real people improve their businesses, incomes, and lives!

For most folks, a college degree is the biggest bill of their lives. I never went to college. So I don’t have any massive bills or giant debts hanging over my head. My greatest education came from Virtual Tool Booths. (for a tiny fraction of what college costs) and it’s the bill that pays ALL the bills - a hundred times over!

I really wanted to share this secret weapon with others, so they could change their lives the way I changed mine. So if you’re not 100% sure about college, or only researching to make someone else happy, Virtual Tool Booths. might be a better option for you.

Want to know how I built this life with no formal education?

Learn More Here

The Interest Rate

The interest rate is a small percentage of the amount loaned that a lender charges for borrowing their money. There are two different kinds of interest rates: variable (also called adjustable) and fixed. Often changing over time, variable interest rates are typically centered on a standard market rate, such as the prime interest rate. The prime interest rate is the lowest interest rate a bank can offer a preferred borrower at the specific time and location that they are applying. For example, if you take out a loan with a variable rate of prime +2, you will pay two percent over the prime rate no matter what. On the other hand, fixed interest rates are unchanging, so the same percent will apply for the duration of the loan. Interest rates are a standard addition to most student loan programs.

The Security Aspect

All loans are either secured or unsecured, depending on whether collateral is required to guarantee the loan. If you have a secured loan, you have guaranteed the lender that you will pay back the money in some form, often by providing a claim on a valuable asset that you already own. In a secured loan, the lender can take the collateral if the loan is not paid. Because this guarantee provides high security, lenders can charge lower interest rates.

Requiring no collateral, the lending institution has no protection if an unsecured loan is not repaid. Almost always with higher interest rates, unsecured loans often require a co-signer who is legally bound to repay the loan if the borrower cannot. No collateral is required for most student loans, but interest rates are still low.

The Term

The loan term is the maximum amount of time an individual has to repay the loan. Most student loans have 10-year repayment terms. In general, a longer term results in a higher interest rate. As a rule, student loans can be repaid in full before the term ends.

Sources For Student Loans

Generally, there are two primary sources from which student loans are issued: the federal government and private lenders. To receive most federal student loans, you will first need to complete the Free Application for Federal Student Aid (FAFSA).

Federal, State And Private Loans

Federal loans make up nearly half of the total financial aid awarded to undergraduate students every year. Typically, federal loans are less expensive than state and private loans. While state agencies offer state loans, private loans are offered by various sources, including financial institutions, private foundations, and some colleges and universities. In general, state and private loans are unsubsidized, non need-based, and come with higher interest rates.

Need-Based Vs. Non Need-Based Loans

Loans are commonly divided into two main types: those that are based on financial need, and those that are not. Need-based loans are only awarded to students who have demonstrated the adequate amount of financial need on their FAFSA. Usually, need-based loans come with better terms and lower interest rates than most other forms of credit. With need-based loans, the borrowed does not have to start repayment until after graduation. Need-based loans are also subsidized, meaning that the government pays the interest for you while you are still attending college. Non need-based loans are intended for individuals who do not demonstrate a financial need, but are still unable to pay the costs of college based on their income and savings alone. These loans are usually unsubsidized, forcing the student to pay interest.

Joshua T Osborne

Founder/CEO – Mr. & Mrs. Leads

$84K Per Month providing Toll Booth Leads to small business owners all over the United States. 

Degreefinders.com is for anyone who is looking to get out of the daily corporate grind and provide a better lifestyle for themselves and their families while bringing massive value to small business owners. 

You can learn more here.

Follow Me

Leave a Comment

Your email address will not be published. Required fields are marked *