Student loans are expensive, but there are alternatives. Many schools set up a payment plans. With the payment plan there will likely be a contract between the student and school to pay off tuition gradually as the semester progresses. This allows a student to go to school without worrying about student loans. If there is enough income to support it, this is an excellent option.
Granted, with payment plans, there may be a small fee to pay. Most likely it will be less than 40 dollars. In the long run, even with the fee, you will pay less than you would if you took out a student loan to pay for the semester’s or school year’s tuition.
This is a good option for the working class who may not be able to afford it in bulk. If you get paid on a regular basis, you can contribute to the tuition of your school monthly. Paying the cost of tuition monthly will allow less money owed, which means paying less after college. In addition, you aren’t accruing interest if you pay it off write away.
In comparison to the government, a typical loan comes with an interest rate of 3.76%. For both Direct Subsidized and Unsubsidized Loans, you will pay back 3.76% in interest, plus a small fee of around 1% of the total loan. If you pay month by month, the school usually offers no interest rate at all. … Read the rest...