College Student loans EXPLAINED: Everything You Need To Know About Student Loans

Feeling overwhelmed by student loans? You're definitely not alone, but there's no need to worry. While student loans might seem complicated, understanding them doesn't have to be. Hey everyone, welcome back to the channel. And today we're going to be diving into student loans and everything you need to know about them. So in this video, we'll break down everything you need to know about college student loans, focusing on two major players in the field, which are College Ave and Sallie Mae. We'll also explore the types of loans that they offer, the differences between fixed and variable rates, repayment options, and how to choose the best loans for your needs. Whether you're just starting to look into student loans or you're trying to make sense of your options, stick around for a comprehensive guide that'll help you navigate your way through financing your education. And if at any point you decide to try either College Ave or Sallie Mae, use the affiliate links that I left down below in the description. They won't cost you anything, and you might even be eligible to get a bit of a discount, which you wouldn't get if you went directly to either of their websites. Without further ado, let's get this video started. Right. So you generally can't go wrong with the first one on my list, which is College Ave. They're an online student loan portal that arranges loans and provides financial services for students using a few different banks. Meaning they arrange lending for you, but don't actually do the lending themselves. And the reason why I like them is that there is a really, really easy pre-qualification process right on their website that doesn't use a hard credit check that would reflect negatively on your credit history. So you don't have to worry about it affecting your credit score. Then once you get pre-qualified, all the deals that you're approved for and that you can get will show up right there on the website. And only after you see your options will you go through the formal application, which will in turn affect your credit score. So if you type in all the information correctly and you're honest with them, you can see all your options really fast without it negatively affecting your credit score, which not all services offer. Okay. So when it comes to their website, College Ave is really easy to use and is packed with tons of helpful information about scholarships and loan financing. They offer loans starting as low as a thousand dollars going all the way up to the full cost of tuition. They also have refinancing options. If you already have student loan debt, which could help you pay less on that debt or even pay it off faster. Now, College Ave is a private lender, which means that they can offer both fixed and variable rate loans. And if you don't know the difference, fixed rate gives you predictable and unchanging monthly payments. And at College Ave, these start at 3.89%, but a variable rate on the other hand changes based on market conditions and not College Ave, they start at 5.59%. All right. So if you want to qualify for a loan from College Ave, here's what you need. You must be at least 16 years old, have a social security number and be enrolled in an eligible school. For undergrads and international students, having a co-center is also really, really quite necessary. And the prequalification process is actually pretty quick. It takes about three or four minutes to see if you qualify and to check potential rates. You'll then have the option for various loan types, including undergrad, graduate, career, parent, or refinancing existing student loans. Now, after you select your loan term and APR, College Ave will check your enrollment and make sure the requested loan amount aligns with the school's cost of attendance and academic progress guidelines. And once everything is confirmed, College Ave will disperse the funds directly to the school. Now, the benefit of being financed through College Ave is that along with having pretty flexible terms, they offer a number of ways you can save on how much you pay on the lifetime title of the loan, starting off with making minimum payments while you're still studying. If you're able to make minimum payments while you study, it shows them that you take your responsibility of paying back your student loan seriously. And then therefore they reward you by lowering your interest terms slightly. Also, you have the option of paying interest charges each month while you're still in school, or you can pay a flat rate of 25 bucks per month. On the other hand, you can go for a deferred payment where you don't make any payments until after you finish school, but you'll end up paying more interest over the lifespan of the loan. So I mentioned the fixed and variable rates. And the reason I recommend College Ave is that they're all about the students and getting you the best deal possible. They also have lower than average starting rates compared to other lenders in the industry, but their maximum rates are also much higher than the averages for student loans, going up to just shy of 18% on both variable and fixed interest rates for undergrads. But their loans are structured to help you pay off your student loan debt as fast as possible. So they do encourage you to start paying off while you're still studying. And those low starting rates are also there to help you get out of debt faster. And just to reiterate, if you decide that you want to try either College Ave or Sallie Mae, check out the affiliate links that I left down below in the description. They don't cost you anything. And you might even be eligible for quite a bit of a discount, which you wouldn't get if you went directly to either of their websites. Okay, so the next company has a name that's very familiar to a lot of Americans, which is Sallie Mae. They're a private student loan provider that started out as a federal student loan lender in the 1970s. Nowadays, they offer both undergraduate and graduate loans, as well as loans for trade schools. And they also fund part-time and international students as well. Now, compared to College Ave, Sallie Mae has fewer options when it comes to repayment and even fewer choices for loan terms. And although they don't charge you any loan application fees, they don't have a pre-qualification process like College Ave does. So when you fill out their online application, it will actually reflect on your credit history. So my advice is that you do your best to check and see if you qualify before you go through the process, because you don't want it to affect your credit score negatively. All right, so to apply, you'll need to provide some basic personal information and details about your school and the semesters you're seeking funding for. You also need to know what your school's total cost of attendance is, which includes not only tuition, but also expenses like meals, equipment, and books. This information is usually available on your school's website. Like College Ave and many other lenders, your loan amount can't exceed your school's calculated cost of attendance. If you have a scholarship or a cosigner, you'll need to include that information. While having a cosigner isn't mandatory, most students without one will need a solid credit history to qualify for the loan. Even if you can get approved on your own, by the way, having a cosigner can secure you a lower interest rate. So it's definitely worth considering or asking a parent or another adult with good credit history to cosign for you. Okay, so once you've filled in all these details, Sallie Mae will give you a document called a loan application solicitation disclosure. It's a pretty detailed breakdown of the rates, terms, and repayment plans that apply to you. If it works for you and you decide to go ahead, then Sallie Mae works directly with your school to disperse the funds. Now, when it comes to loan terms or how long you have to pay the loan back, Sallie Mae has fewer options than College Ave. They offer either 10 or 15 years for undergrad and career training loans, 15 years for MBA, law, and grad school loans, and 20 years for medical or dental school loans. Their minimum loan amount is $1,000 and the maximum is 100% of your school certified expenses with a standard late payment fee of $25. Which brings us to repayment plans, where you have three choices. You can pay interest or a set amount of 25 bucks a month while you're still in school and during a six-month grace period after you finish school, or you can start paying after you finish studying and the grace period is up. Obviously, it's best to pay as much as you can while you're still studying if you're able to. That being said, the most important thing is the rate and at Sallie Mae, they offer a bunch of different rates. But because I mentioned undergrad rates for College Avenue, let's see how Sallie Mae stacks up in that respect. So, for fixed undergrad rates, Sallie Mae starts at 3.89%, which is the same College Ave offers, and it goes all the way up to 15.49%, which is quite a bit lower than College Ave's highest rate of just shy of 18%. And when it comes to variable rates, Sallie Mae starts at 5.37% and their maximum rate is 15.7%, which is still quite a bit lower than College Avenue. Okay, so to wrap things up, navigating the world of student loans can be daunting at first, but understanding your options is important if you want to make the right decision. And we've covered everything you need to know about them and also explored the ins and outs of College Ave and Sallie Mae, highlighting their unique features and benefits. So, whether you're just starting your college journey or looking to refinance, knowing the details about student loans can help you make informed decisions about your financial future. Remember, education is an investment, and choosing the right loan can set you on the pathway to success. So, that's it for this video. If you found it interesting or helpful, give it a thumbs up and subscribe to see more videos like this. It really helps us out. And just to reiterate one more time, if you do decide that you want to get College Ave or Sallie Mae a try, check out the affiliate links that I left down in the description. They won't cost you anything. One more time, and you'll get a bit of a discount, which you wouldn't find if you went directly to either of their websites. And as always, I enjoy hearing your thoughts, and I'll try to get back to any questions or comments you leave down below as fast as I can. And finally, guys, thank you so much for watching. Good luck on your journey, and I'll see you in the next video.