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How To Find the Best Student Loans And Rates - YouTube
Channel: The College Investor
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so you've made the decision to get a
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student loan
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or several deep breaths because
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the student loan process can be just a
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little bit overwhelming
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so in this video i'm going to be
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covering how to find the best student
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loans and
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rates and what type of factors you
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should look into
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before you sign up for one
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hey guys welcome back to the college
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investor the place for
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investing and personal finance for
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millennials
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today we are talking about student loans
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and
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all of those little pieces that go into
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it now
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back in the day there weren't really a
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whole lot of options and it seems
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now you can just do a quick search on
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the internet
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and you'll come up with a million
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options
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so first you'll want to make sure you
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understand
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the difference between federal versus
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private loans
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if you are signing up for federal
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student loans understand
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that those rates those interest rates
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are locked in
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by the government now at the time of
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this recording
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direct subsidized and unsubsidized loans
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for undergraduates
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is at a 2.75 percent which
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is some of the lowest interest on
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student loans
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in a long time so if you've either
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already exhausted your federal student
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loans
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or you're looking to receive additional
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outside resources
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using private student loans then there's
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a couple of key factors that you'll want
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to make sure you review
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before you sign up the first thing is
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you want to look into interest rates
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obviously the lower the interest rate
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the better next you want to look at your
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loan term
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the terms can range anywhere between
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three to 25 years and those terms
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simply means that's how long you have to
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pay back that loan
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next you'll want to make sure that there
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are no origination fees then take a look
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at your
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repayment plan options forbearance
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options
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any bonus offers that maybe there's a
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discount if you sign up with them
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and then no prepayment penalties
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basically a prepayment penalty
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would be they would charge you a fee
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for paying off your student loans early
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you definitely don't want that
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the whole goal is to pay off those
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student loans as quickly as possible so
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make sure there are no prepayment
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penalties then lastly you'll want to
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take a look at their cosigner options
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if you're a new student you're more than
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likely going to need
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a co-signer to sign up for these private
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student loans
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so take a look at those terms and how
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they factor into the overall cost of
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that private student loan
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that's why we really enjoy recommending
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credible
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it's a great tool that compares multiple
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private lenders and shows you very
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quickly in just a couple of minutes
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exactly what kind of rates you can get
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all within one resource in fact
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at doing a quick search on credible's
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homepage
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you can quickly see the types of private
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lenders
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that they work with and then get an idea
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of their different rates
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fixed or variable now the fixed interest
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rate is going to stay the same
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throughout the life of the loan whereas
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variable it
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may be lower at a 2.7 percent
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but just keep in mind over time that
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interest rate can fluctuate
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up and down so you want to make sure
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that if you sign up for
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a private student loan with variable
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interest know that that interest rate
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can change and
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likely go up then you can quickly see
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their loan terms
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and then if you can use those loans for
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undergraduate
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or graduate degrees credible makes it
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really easy just to figure out exactly
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what kind of private student loans you
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can get and what those rates are
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now as much as we like them they don't
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have every option available
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so continue to do your research and as
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you are researching
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and getting some rates put together
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understand that
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you will have a soft pool and a hard
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pool of your credits
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so when you're researching and getting
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these personalized rates
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banks are going to do a soft pool on
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your credit which isn't really going to
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hurt your score if you're doing it in a
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short amount of time
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now when you apply and do a formal
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application you're actually going to go
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through with this particular lender
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that is when they will do a hard pull of
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your credit score
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so understand the differences then also
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make sure you understand when to apply
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and submit your application
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if you're wanting to start college in
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august it's recommended that you
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fill out your application 30 days at
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least 30 days prior to starting so that
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means you should have those applications
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ready to go
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everything's locked and loaded 30 days
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out before you start college
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at minimum so our quick picks for the
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best private student loans out there
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that we've researched
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include credible earnest
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ascent sofi
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lind key and common bond what's great
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about these
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lenders is that often many of them do
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not have
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any application fees or origination fees
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they're really easy to work with the
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platform is
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very easy to understand now if you're
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wanting to dive deeper
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into each of these lenders then be sure
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to check out our complete review of each
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one
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on thecollegeinvestor.com as with
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everything related to paying for college
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there is an order of operations that we
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recommend you
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follow and that starts really with
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getting free money that you don't have
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to pay back
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so that's scholarships and grants first
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and foremost that should be your
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first avenue for paying for college
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followed by
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your own income your parents income
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anytime you can cash flow
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student loans really should be a last
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resort and private student loans
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aren't for everyone private student
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loans is actually at the bottom
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of our list when it comes to financing
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and paying for college
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so be sure you understand the pros and
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cons if you want more information
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on how to pay for college side hustles
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student loans and more be sure to check
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out thecollegeinvestor.com
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