Common Mistakes Oklahoma Students Make When Applying for Loans

by Luke Homen

Common mistakes made when applying for student loans can delay or prevent approval. We’ll discuss those errors to make the process as simple and easy as possible. Student loan Convenient Bankruptcy helps students who have difficulty paying back their loans so they can live a normal life without financial hardship hanging over their heads.
Student loan attorneys Luke Homen, Colin Barrett, and Alex Sullivan help clients manage their student loan debts, including seeking a discharge of their debt. If you need assistance, call our student loan lawyers at 405-296-0059.

Common Student Loan Application Mistakes

1. Can you get other funding for college?
Free money costs less than loaned money because you need not repay it. You may pay thousands of dollars of interest plus fees for your student loans. Although time-consuming, try to obtain as many grants, scholarships, and tuition waivers as possible. The more free money you get, the smaller the loan you’ll need.

2. Don’t apply for private loans before you know what else is available
Complete the Free Application for Federal Student Aid (FAFSA) form and submit it before applying for private loans. After you hear back from your financial aid office on your award, you should know how much you’ll need, if anything, from private loans. Don’t needlessly obligate yourself to pay back more expensive private loans before you know what you need.

3. Don’t go deeper into debt than necessary
Don’t borrow too much money, suggests USA Today. Apply for student loans, and if you’re successful, don’t take more than you need. You may be offered more than what’s necessary. Don’t needlessly go further into debt to create a slush fund of fun money. It’s not a gift. It’s a loan that must be repaid. The rule of thumb is you shouldn’t go into debt more than what you expect to make your first year after graduating. If it’s possible, don’t go beyond that amount. Every dollar you loan, by the time everything is paid off, could cost you about two dollars to pay off.

4. Not all interest rates are the same
Understand the difference and long-term effects of variable and fixed-rate loans. A variable rate loan may be lower at first, but eventually, it may go much higher than the fixed rate offered with a federal loan. The longer the term, the greater the risk of higher interest rates. Variable-rate loans are from private sources that don’t offer the same repayment flexibility as the federal government. Fixed-interest rate loans are predictable, and you’ll be better able to budget for them. Although the interest rate won’t decrease, it won’t increase either.

5. The shorter the loan term, the lower the costs
A longer repayment plan will result in reduced monthly payments, but the total costs increase because you pay interest for a longer time. Payments are applied interest costs then the principal balance. A lower payment means less interest will be paid. Doubling the term can result in doubling the total interest cost.

6. Fill in the blanks
If part of the FAFSA or loan application doesn’t apply to you or your family, respond by stating, “Not applicable.” If you leave it blank, it will be considered incomplete and may delay your loan approval.

7. Mistakes can delay your loan approval
Double-check what you write down. Incorrect information, such as the wrong driver’s license or Social Security number, could result in a loan denial or your approval being delayed. You may spend too much time on the paperwork, so having someone else proofread the application and double-check the information you provide may be a good idea.
Don’t make the mistake of using an incorrect driver’s license or Social Security number. This mistake could result in a denial. To avoid this, double-check your information. Have a trusted person review and double check your applications before submission.

8. Fraud is a crime
Intentionally including false information is worse than using the wrong information. It’s a fraud that could result in criminal prosecution and a civil lawsuit by the lender. Financial institutions use software programs to find false claims. They also confirm an application’s content using employment verification services, credit reports, and public records.

9. A co-signer for private loans may help you get approved
Using a co-signer can aid you in getting private student loan approval, especially if you have little to no income or credit history. A cosigner’s financial and credit information will also be considered because if you don’t make payments, they’re obligated to pick up your slack. Finding someone willing to take that responsibility may be difficult, depending on your situation.

Trust the Student Loan Attorneys at Convenient Bankruptcy

Put in the extra time and effort to consider your student loan needs and complete the necessary paperwork as completely and accurately as possible. It may prevent approval delays and the denial of your student loan.
The student loan law Convenient Bankruptcy team is here to help you decide your options and next steps if your loan repayment is unaffordable. Ready to discuss student loan discharge with our student loan lawyers? If so, call our law firm at 405-296-0059 or message us today.