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| Loan Offers Comparing |  Imagine that you’ve received your financial aid award letter and there are several different loan options available to you. How do you know which loan package is best for you? What do all of the terms mean? Is one loan better for you than another? Keep in mind that getting your loan package in the mail is just the beginning. Spend some time to evaluate the different loans to see which one will meet your needs. Read the following information to learn how to compare loan offers so that you can make an informed decision as to which loan is right for you.
Four Key Variables
As you start to compare loans, there are four key variables to consider: interest rate, subsidized versus unsubsidized, fees and repayment terms. Get to know how each variable comes into play with your loans.
• Interest rate. No doubt you want the interest rate to be as low as possible. The lower the interest rate the less you pay back over the life of your loan. Remember that lower interest rates save you money.
 • Subsidized versus unsubsidized. If you have subsidized loan, the federal government will pay the interest for you while you’re in school, because it is based on financial need. It means that the government makes this type of loan less expensive for you. Always consider a subsidized loan first, if you are eligible.
• Fees. A lot of loans will have originating and processing fees. If you borrow $5,550, it doesn’t mean that’s the amount you’ll receive. Your check amount will have fees deducted from it. Always try to get a loan that has the fewest amounts of fees.
• Repayment terms. Some offer a full range of repayment plans as well as incentives, such as interest rate reductions for on-time payments. Make sure you understand the repayment requirements and options before borrowing a loan.
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