To enter the university supposes a great financial challenge so much for young people, as for parents. The university implies tuition costs, materials, books, transportation and other additional costs. For this reason, some young people get part-time jobs. But the reality is that sometimes a part-time job can not cover all of the costs.
Generally, the cost of tuition is somewhat high and loans must be used to finance it. Because of this, it is very important to do a study and compare offers of loans. That is, make a deep analysis on the different types of loans and the interest rates of each.
There are some main types of financing which are through banks, government or financial entities. Generally, their requirements and documentation are simple and are quick to do. On the other hand, there are scholarships which are an excellent option, but to earn one you will need to be a very good student.
If you are a student who is about to enter university or are looking for a way to pay for your next semester, in this article we will help you. Maybe the comparison process is something technical. However, these items will be very supportive and if you implement them correctly you can save a few dollars.
Items to take into account in the comparison of loan offers.
Approach the banking or governmental entities that exist in your city and request a letter of financing of loan. This is a quote made by banks or entities, where they give you all the credit information. This letter must have at least the first 5 items, presented below.
Capital provided by these entities
The capital that the entity lends varies. It is not always the totality of your registration. She can finance a percentage of this, this will depend on the indebtedness of your co-debtor. That is, the entity must verify that who takes the loan has the necessary resources.
Find out with your parents or family members that they have a good credit history. It will be very helpful if you need to finance the majority of your tuition. Sometimes, the bank can ask for up to 2 people to support the loan.
Payment terms of the loan
Educational loans can be financed months or years, depending on the country and the entity. But the longer the pazo of the loan, the greater the interest. Keep in mind that these can increase significantly.
It is better that you choose a term that is affordable for your family and for you. Remember that within 6 months you may ask for another loan, for the next semester. In this case, the next semester the minimum payment fee will increase for your new loan. You can even gather more months and you can find yourself in a situation where you can not pay.
Entity interest rates
The interest rate offered by banks are generally expressed in monthly values. For example, 2.1% monthly or 2.5%. However, you must do the multiplication for 12 months to know what the true interest that the bank will charge you on the loan amount. For example: 2.1 * 12 = 25.2% EA (Annual cash)
If you want to know the approximate value that you are going to pay, add the monthly rate for the number of months you intend to defer the loan. Keep in mind that, the more months, you will pay more money to the entity.
For the payment of your loan, you will choose a maximum monthly payment date. That is, the last day that you can pay your credit before interest on arrears is charged. The date must be strategic, for example, after payment of the salary of your parents or relatives.
Ask for default interest, in case you can not pay on time. This interest is higher than the monthly interest charged by the entity. So, try not to exceed your deadline because you can be charged for these interests and this is not good in the credit history of the person who made the loan.
Minimum payment fee
The minimum fee refers to the minimum amount of money you must pay monthly. This fee includes the percentage of interest charged by the bank per month. You can compare loan offers by asking for a quote with the same capital, in two different entities. There you can analyze which quota is lower than the other and make a better decision.
You can make installments to the debt along with the monthly payments. But it is very important that you ask if the credits go to capital or interests. That is to say, if the payment of money will reduce the debt or will only pay the interest charged by the bank.
It is advisable to choose an entity that allows you to make payments directly to the debt. This way you will pay your credit faster and you will decrease the interest on your next payments.
Along with the loan, the entity will ask for life insurance, this in case the person who requested the loan died. The insurance may cover the total debt. This service is offered through entities of insurance entities. Additionally, it has a monthly cost.
Ask what is this insurance cost to the entity. This will be charged as an additional charge to your monthly minimum fee. This charge is a mandatory payment.
Sometimes when you have a loan with a bank or entity you can access some benefits. The benefits can be discounts on the purchase of products, or entertainment services. They can also be in acquisition of educational material or fairs that do in your city.