Taking a loan can be a scary prospect for anybody, and even more so for first-time student borrowers. There are so many challenging terms to understand and a long list of things to be careful about when borrowing money. Not taking the time to understand how loans work and what the different terms mean can result in first-time student loan borrowers making expensive mistakes. The best way to avoid making these mistakes is to learn as much as you can about how loans work so you are well-prepared.
So how do you prepare for the loan process?
Read up on student loans
The Office of the US Department of Education website has comprehensive information about the different types of federal student loans, the differences between them, eligibility criteria, how to apply and more. College Raptor is another excellent website for finding information about college loans—both federal and private.
Ask questions
As you read about student loans, you may come across things you do not understand. Make a note of your questions so you can get all your doubts clarified. Do not overlook any detail just because you do not understand it. When it comes to student loans, the devil really is in the details.
Take your entrance counseling seriously
The Federal Government has made it mandatory for first-time borrowers to complete entrance counseling. Entrance counseling covers everything you need to know about the student loan process. They help you understand what you are committing to. Completing your entrance counseling will arm you with the necessary knowledge and help you be better prepared for the student loan process.
Use College Raptor’s free Student Loan Finder to compare lenders and interest rates side by side.
| Lender | Rates (APR) | Eligibility | |
|---|---|---|---|
 |
5.50%-16.12%* Variable
3.99%-15.61%* Fixed
|
Undergraduate and Graduate
|
VISIT CITIZENS |
 |
5.54% - 15.70% Variable
3.99% - 15.49% Fixed
|
Undergraduate and Graduate
|
VISIT SALLIE MAE |
 |
5.00% - 17.99% Variable
3.49% - 17.99% Fixed
|
Undergraduate and Graduate
|
VISIT CREDIBLE |
 |
6.00% - 13.75% Variable
3.99% - 13.75% Fixed
|
Undergraduate and Graduate
|
VISIT LENDKEY |
 |
5.66% - 14.72% Variable
3.69% - 14.56% Fixed
|
Undergraduate and Graduate
|
VISIT ASCENT |
 |
3.70% - 8.75% Fixed
|
Undergraduate and Graduate
|
VISIT ISL |
 |
5.62% - 16.85% Variable
3.69% - 16.49% Fixed
|
Undergraduate and Graduate
|
VISIT EARNEST |
 |
5.00% - 14.22% Variable
3.69% - 14.22% Fixed
|
Undergraduate and Graduate
|
VISIT ELFI |
