What all parents should know about comparing financial aid award letters before making a decision about where to enroll.
15 Questions to Ask Before Borrowing a College Loan
Mar 29, 2012 9:46:00 AM
Before you borrow any student loan, always ask the lender the below list of questions. For more paying for college tips,
download our free Guide to College Borrowing.
- What is the interest rate?
- Is the interest rate fixed or variable? (Variable rates can change monthly or annually until your loan is paid off, which means your payment can also change.)
- Is the rate I receive based on my credit?
- Does the interest rate ever change? (Some loans have different rates while you are in school vs. after you graduate and start repaying your loan.)
- What are the fees? (repayment fees, origination fees, default fees, late payment fees, etc.)
- What is the loan term?
- What would my monthly payment be if I borrowed $X,XXX?
- When would my first payment be due?
- How are loan funds disbursed? (to you or the school?)
- What steps do I need to take to complete an application?
- How long does it take to process an application?
- Are there loan limits? Annual? Aggregate?
- Who is eligible for this loan?
- Do I need a cosigner?
- What deferment and forbearance options are available to me?
Topics: Borrowing for College
