Georgia Student Loans
Avoid the Spendy Bank Loans
The state-sanctioned, Georgia Student Finance Commission, has created GACollege411.org. This online portal is designed as a comprehensive guide where parents and students may get the real low-down on saving for college and finding the best scholarships, grants and loan programs in Georgia. Institutions like GSFC work closely with state governments to facilitate disbursement of federal funds and manage customer/borrower accounts. Many such organizations are also sanctioned to offer their own brand of student loan. Loans typically come with low-interest and long-term repayment plans, and are the option to high-end and spendy private loans typically offered by banks and other big business student loan companies.
Georgia’s Alt Loan
GSFC’s student loan special is the GACollege Alternative Loan. Just like it says, the loan is an alternative to other more high-end private loans. While it is available to a wider range of student, it still comes bundled with some of the same features you’ll find in a real bank loan.
Application Criteria
Expect to be required to agree to a credit check if you are applying for the GACollege Alt Loan. If you have no credit established or bad credit you might start shopping for a solid choice of co-borrower. Many students choose a parent or guardian, other relative or friend. In fact this loan gives you leeway to choose two, kind of a tag-team co-borrower option. Make sure they have good credit. According to many lenders this includes a low debt-to-income ratio. This means if they are big spenders with credit cards and a bunch of debt, they may not be a good fit for you. This does not mean they don’t make their payments, it just means they already have a full plate, in credit/debt terms. Once you have a co-borrower(s) chosen, you may apply right online.
Repaying the Loan
Like many alternative student loans, the GACollege Alt Loan can be customized. Borrowers may make payment deferments depending on their situation and you can borrow up to $25,000. Repayment of the principal typically does not start until 6 months beyond your graduation. This initial term of 6 months is a pretty standard grace period in which everyone just hopes you get a job and start living a responsible and stable life.
Paying Interest Gets You in the Swing
In the meantime, though, you should be aware that private loans do require you to make monthly payments that cover the interest only. These begin as soon as your loan is disbursed, or paid to your college. This is a perfect opportunity to get used to making monthly payments on time. Don’t default or fall behind.
For detailed information on Georgia college planning and low cost state-sanctioned financial aid, visit GACollege411.
