How to Find the Right Loans to Fit Your College Dorm Prices
Take a look at some great tips and student saving advice for finding loans that work within your budget and fit the college dorm prices at your university.
The average cost of housing for college students ranges from $7,500 to $9,000 per year. That's a total of $30,000 to $36,000 for four years of college. Many people can't afford to pay this bill out of pocket.
That means that the only way to afford college dorm prices is to take out a loan. Use this guide to learn what kind of loan you need and how to find it.
Does a Student Loan Cover Housing?
Whether you're living in on-campus dorms or off-campus student apartments, you need to find a way to fund your living expenses. One option is to take out a student loan. These loans can cover everything from tuition, housing, textbooks, and any other supplies you need.
There are two types of student loans: private and federal.
You can secure a private student loan with a favorable interest rate. These loans will come with benefits like delayed repayment, forbearance options, and lower interest rates.
You can find these loans from private lenders, banks, and credit unions. You will be asked to fill out an application and go through a credit check. If you have no or poor credit history, the lender may ask for you to have a co-signor.
Federal student loans tend to have lower interest rates than private options, and there are no credit checks. There are also more options for choosing a repayment plan with the ability to have your loan forgiven.
To apply for a federal student loan, you'll need to fill out the Free Application for Federal Student Aid (FAFSA). This is how you find out how much you're eligible for.
You could get approved for three different types of loans: Direct Subsidized, Direct Unsubsidized, and Direct PLUS. Each of these loans has different interest rates, repayment options, and other terms.
Another option is to take out a personal loan. Typically, the interest rate on a personal loan won't be as good as a private student loan. But your credit score significantly influences this, so rates can vary greatly from one borrow to the next.
Your personal loan will get paid out directly to you. It will also require repayment to begin immediately.
How to Choose a Loan
Before you choose any loan, you should look at all of your different options. Then compare the interest rates, fees, amount awarded, and terms of each loan. This will help you determine which loan is right for your current financial situation.
Pay College Dorm Prices With a Loan
When facing the living costs of college dorm prices, it can start to feel overwhelming. But it doesn't have to with the help of loans. This is money you borrow to help pay for your living costs while in school.
You can find a loan through the federal government or a private lender. The loan you choose will depend on your current budget and financial need.
Find the perfect apartment for your time at college by using our helpful guides.