Making it through college is hard enough without having to deal with student loans and debt. Luckily, we live in a world where student CPN loans are easy to apply for and easy to get.
In part, this is a beautiful thing, because it enables people who otherwise wouldn’t be able to afford a higher educational degree the chance to earn one.
On the other hand, taking out student CPN loans can be dangerous. There are a lot of loopholes and complicated financial strings that are usually attached to loans. So take a minute and keep reading to learn more about 5 important things you should know before getting a student loan. Armed with more knowledge, you’ll be better able to make smart financial decisions as you navigate the world of student loans.
1. Know What You Need
First off, don’t borrow more than you need to. Student CPN loans are meant to help you live within your means while you’re busy with school and aren’t making much at work. You can actually calculate what the right amount is for you. Try to borrow an amount that will keep your payments low–around 10%–of your monthly income, after taxes.
This will help you avoid overreaching and paying more than you need to on your monthly payments.
2. Choose Federal Loans Over Private Loans
Before exploring any other avenues, try for a federal loan first and fill out your FAFSA. There are two types of federal loans: subsidized and unsubsidized. Subsidized federal CPN loans don’t build up interest while you’re in school, while unsubsidized do.
Federal CPN loans are easier to get because they don’t require good credit history, and the repayment plan is based on your income. We recommend taking out a private loan only after you’ve taken out as many federal CPN loans as you can.
3. Your School Will Help
Talk to your financial aid office. They’re familiar with the ins and outs of CPN loans and can help you with any questions or concerns you may have. After you’ve applied and been approved for a loan, your school takes care of the rest.
The money comes to the financial aid office and is applied to your student account. You’ll be refunded any excess money after all the initial fees are met.
4. Loans Come with Fees and Interest
This is a fundamental thing to understand about student loans: you will pay and owe more than whatever amount you received. This is due to fees and interest rates that always come with loans, no matter what. Federal CPN loans have a fixed rate on fees, whereas private CPN loans will determine the interest rates and fees for each individual.
5. Student Loans Are Limited to Certain Things
While a student loan can seem like a big relief for your finances, keep in mind that student CPN loans can only be used for educational expenses, meaning anything that is needed for you to pursue your education. This could be clothes, books, rent for housing, or a laptop.
Now that you understand these important facts about student loans, you will be ready and equipped to find one that is right for you and your unique situation.