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My advice

My advice

Heres what you need to know before you take out any student loan this summer.

  1. Your loan terms are different

You have two different types of student loan that affect your repayments.

According to professionals like the ones from SoFi, government-guaranteed student loans are provided to students at certain educational institutions. This includes private and public colleges and universities. Your loan terms are usually between five and 10 years and will range from $3,000 to $20,000 depending on the amount borrowed. This can give you a much better understanding of how your loan repayments stack up against your other expenses.

Private student loans have their own terms and lenders have the power to set your repayments according to what you can afford to repay. For example, you can only have private loans if you live in Australia, New Zealand or Canada. For those with overseas student loans, the repayment will be between 15 and 30 years.

  1. You need to decide on a repayment plan

This is where it gets tricky because each type of student loan requires its own repayment plan, and you need to compare them before settling on one. Before you apply, go through the student loans calculator that’s online and select your repayment plan. You should make sure you know which of your repayment options will suit you best. We recommend using the calculator, and if you don’t have time, ask for help from a financial adviser. Student loans are often based on your gross income, so you need to get as close to your net income as possible to give yourself a good chance of qualifying for a good repayment plan.

You can apply for loans as many times as you like. However, there are some rules to keep in mind. You can take out loans only once you’ve been in a graduate program, and only to cover the cost of living while in school. For more details, see the Financial Aid page on your student page. If you do need financial help, the Student Finance Services office has resources for people from all walks of life.

If you have questions about your student loan situation, you can find information about getting a loan at the Student Financial Assistance page.

Do I have to take out loans?

No. There are federal student loans and private loans available to you, both of which are fully subsidized by the federal government. Both private and federal student loans help cover the costs of attending college, and have low interest rates. You can even get federal loans to pay for college if your income is above a certain amount.

If you are enrolled in college or working towards a degree, then you must take out federal loans or work with your student loan servicer to get a loan.

I’m worried I might not qualify for federal loans. What should I do? All loans come with some type of review process. If your income does not meet the federal income limits, you will be required to either have your loans approved or apply for a hardship deferment. If you are unable to pay your loan back, you will have to choose between repaying the principal or paying off the loan. You may also be eligible for a loan forgiveness program. If you are enrolled in school and making progress towards a degree, your loan servicer may have a special program that allows you to continue making payments. You will find more information at your student loan servicer’s website. If you do not meet the income guidelines or the federal income limits, you may not be able to get any federal loans at all. You may opt for experienced checking when that happens.

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