Should I get a student loan?

I am going to a college where it will cost around $5000 a year with tuition, fees and book all added up.

My parents are willing to pay for it because of the low overall cost, however, I was wondering whether I should apply for a student loan. The reason is because I might get a grant because I am from a low income family.

Do you think it would be a good idea to apply for a loan just to get a grant?

4 Answers

  • If you plan to attend school this fall, you should submit a FAFSA immediately. The deadline is June 30 for the following school year, however applications are accepted in January and funds are dispersed until they run out. This means you may qualify for financial aid, such as subsidized loans and grants, but because you are applying late, the funds may have already been given to other students.

    Regardless, submit now and you will probably still be able to receive an unsubsidized Stafford loan. You can then decide whether or not to accept it.

    If your family is low income, you may qualify for a Pell Grant, which does not have to be repaid, or Perkins loan, which is low interest rate. If your parents are borrowing the money to pay for your college, this might be a better route.

    You'll want to reapply each year, early as possible.

    Best of luck.

  • If you really don't want your family to pay for it, then I would apply for financial aid through FAFSA first. Because then they will let you know what you are eligible for all at once whether it be grants, loans, or scholarships. And you can see the amount they will offer you before you accept or deny any of them. That way you can know for sure if you are offered a grant that might even be enough to where you don't have to accept the loans they offer. It's the easiest way. Also remember that you have to pay loans back, and it will be more than what you borrowed.

  • Try to get a better understanding of the terms: grants, scholarships and loans. These terms can be confusing when you are looking for financial help.

    Your parents can contribute what they can afford to help with your education. If you can get enough scholarships and grants, it is possible to fund the cost of your education without taking out loans or depleting your parent's savings.

  • If you can get a grant that you do not have to pay back, then obviously apply for it. It can't hurt.

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