Best Student Loan Options? Here’s What You Should Know.

If you’re reading this, congrats! You – or someone you know – is probably pursuing a college degree. It’s a big, exciting new chapter. And if you’re feeling overwhelmed by the process, you’re not alone.

There’s a lot of jargon when it comes to student loans, so we wanted to demystify your options and empower you with the knowledge you need to pick the best student loan solution.

Keep in mind that student loan offerings and regulations change, so it’s possible some details might be slightly different depending on when you’re reading this.

A Breakdown of Your Student Loan Options

Federal Student Loans

One of the main differences between federal loan options is subsidized versus unsubsidized.

With subsidized loans, interest does not accrue while you’re attending school. Unsubsidized loans do accrue interest during that time.

Subsidized loan offers are capped at a lower amount per person, and only people who meet the financial need criteria (and apply for federal student loans) are eligible to receive one.

Anyone who needs student loans is often encouraged to apply for federal student loans first. To do so, simply submit a FAFSA (Free Application for Federal Student Aid). From there, you can fill any funding gaps with private student loan lenders – like Buckeye!

Benefits to federal student loans include:

• Subsidized loan availability
• Fixed interest rates that are sometimes lower than private loans
• Typically, you don’t need a credit check or a cosigner
• Flexible repayment plans, and you have options to postpone your loan payments if you’re having trouble paying them
• Certain jobs can make you eligible for student loan forgiveness

Private Student Loans

Even after receiving scholarships and federal student loans, many people find they need more funding to finance their education. That’s where Buckeye State Credit Union comes in. We’ve helped countless Ohioans pursue their higher education goals. Buckeye strives to do banking better, so our student loan options are designed to make your experience as easy and stress free as possible.

Benefits to student loans with Buckeye:

• Our student loan marketplace is designed to help you find the best student loan in minutes, not months
• Quick decisioning
• Flexible repayment terms and options that fit your budget
• Competitive fixed and variable interest rates
• No origination fees or prepayment penalties
• No payments are due while you’re attending school

Timeline for College Loan Applications

1. Start with your FAFSA.

If you’re applying for federal student loans, it’s recommended that you submit your FAFSA as soon as possible. FAFSA forms typically open on October 1 for the following academic year. Some state aid is distributed on a first-come, first-served basis – so it literally pays to get your application in early.

The federal deadline for FAFSA applications is June 30, but check your school’s deadline, because those are often earlier. Ohio University and Ohio State University, for example, have a February 15 priority deadline.

2. Assess your financial aid award letter.

Once you know how much you’ve received in financial aid (federal student loans), you can determine how much you’ll need from a private lender, like Buckeye.

3. Apply for private student loans, if needed.

If your financial aid doesn’t fully cover the cost of tuition, you can depend on Buckeye for competitive private student loans to finance the rest. Each school has its own tuition deadline. We recommend applying for private loans at least two months before that deadline.

4. Sign for the loans, and you’re done!

Once you sign the paperwork for your loans, your school will collect everything needed for tuition, fees and room and board. Your school will reimburse you if any money is left over.

What To Consider Before Borrowing

College is expensive! Monthly payments can be too.

The average in-state tuition cost of a public, four-year college in Ohio is a little over $10,000 per year. The average student loan debt for Ohioans is $35,033.

Let’s do the math on that.

Let’s say your loan balance at the end of your education is $35,000.

For this example, we’ll say your repayment term is 10 years, and you have a 6.8% interest rate locked in for the full $35,000. (In reality, you’ll likely have different interest rates for your federal and private loans – just something to keep in mind.)

Your monthly payment would be about $402 per month. You’d ultimately pay about $13,333 in interest, and your total pay-off cost for school would be about $48,333.

Now, if you decided to change your repayment term to 20 years, your payment would go down to roughly $267 per month, but you’d be paying roughly $29,120 in interest – which bumps up the cost of your education to about $64,120.

College loans can sound scary when you think about them in those terms, but it’s good to know what your payments might be once you start repaying your loans. Higher education is a costly investment that many people need to enter the career field they want. And knowledge is power, so make sure you’re informed about your repayment options.

You can use this free calculator tool to estimate what your payments may be.

What to expect from student loan interest rates.

All federal student loans received during an academic year will have the same interest rate. You can check out the current rates offered on the Federal Student Aid’s website.

Federal student loan interest rates are fixed over the life of your loan, but the rate offered changes each year. In other words, students applying this year may have a slightly different interest rate than the students applying next year.

If you receive student loans from Buckeye – or any other private lender – your interest rate will be determined by your (or your cosigner’s) credit history.

Explore personalized rates and options anytime on our website. Our marketplace makes it easy to compare student loans and rates available to you.

Now What?

That was a lot of information, but hopefully you feel more informed and have a clear understanding of how to proceed.

We want you to have the best student loan experience possible, so reach out to us with questions! You can find information on the Student Loan page on our website. If you scroll down near the bottom of that page, you’ll find our email and phone number.

Student loans may seem a bit daunting, but we’ll always be in your corner!