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After you've applied for grants and scholarships to help offset your nursing education
costs, you may find that you still need a little extra financial help. For many,
getting a nursing education loan is the best way to go. Unfortunately, there are
lots of options when it comes to getting loans, so how do you know where to turn
to get that money you need to go to school?
There are two types of loans that work best for nursing education: federal aid loans and private loans.
Federal aid loans
Federal aid loans are those that are awarded through financial aid. When you apply
for fianncial aid, you will fill out the Free Application for Federal Student Aid,
called the FAFSA, which will evaluate your financial situation and need to determine
what kind of federal aid you qualify for, as well as how much. This will often include
information about loans.
Two types of loans that are awarded through financial aid are the subsidized loan
and the unsubsidized loan. The biggest difference between them is that with the subsidized
loan, you won't be charged interest until you're finished with school. With unsubsidized
loans, you're charged interest from the first day.
If you qualify for federal aid loans, you may find that the interest rates and repayment
terms are better than in the case of private loans. This is because these loans are
geared toward students and are funded by the government rather than private financial
institutions. This allows for some freedom to work with the borrowers that banks, for
example, may not be able to do.
Private loans
Private loans are those you get outside of financial aid by working directly with
financial institutions. Many banks offer private loans for education, and may even
have different interest rates and repayment terms than the type of loan you would
get for a mortgage or a car. Still, these loans are different from federally-funded
loans you can get through financial aid, so it's important you understand all the
terms before agreeing to anything.
Private nursing education loans may look at your credit history and employment status
in addition to the costs of your schooling. If you aren't working or don't have a good
credit rating, this could affect how much of a loan you qualify for, if at all.
One thing to keep in mind is that, through private loans, you will likely have a monthly
payment from the first month you borrow the money. The financial institution you work
with will be able to give you details and answer your questions about the specific terms
of repayment, but it is one more thing to take into consderation.
Nursing education loans can be a good way to help offset the costs of your education.
By using loans to make up the difference between the costs and what you receive in
scholarships and grants, you can prevent having to pay out-of-pocket for nursing school.
However, it's also important that you get all the information you can ahead of time and
decide which type of loan is best for you. After all, asking questions now could prevent
lots of headaches in the future, and the transition from student to nurse will be much
smoother!
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