I'll post an article on this next week; but the questions are coming in fast and furious. So here are a few tips for those about to borrow (please note, these suggestions apply to alternative/private loans only--not to federally backed Stafford/Perkins/NDSL/William D. Ford/etc. loans).
1. How much do you really need to borrow?
2. Who can you borrow from?
3. What is the total interest rate (and does it ever change at any point during the life of the loan)?
4. Do you have to pay an origination fee to take out the loan and how much/what percent is it?
5. Do you have to pay any sort of fee to close out the loan?
6. What will your estimated monthly payment be and when does payment begin?
7. If something happens and you can't make a payment as scheduled, are there any options for deferment/forbearance?
8. If you have a co-signer/co-borrower, is there ever an instance where the lender will release that person from his/her obligation?
9. Will you get any sort of discount if you make on-time payments?
10. What happens if you're late on a payment?
11. What happens if you default on a loan?
More to come!!!
