By: Nicole Nelson
When students enter college, it is clear that financial responsibility is now going to be placed more onto the student than it ever has been before. Especially with the poor state of the economy and tuition prices on the rise, it is more important now that ever that students are making smart financing decisions. One way to help with college financing is to pick a bank with good checking accounts. It has been found that credit unions are more cost effective than large name backs because of lower fees and usually there is no minimum balance requirement. Another important choice to make is regarding savings accounts. Although in college most students will be spending more money than saving, it is important to learn the value of saving money. By finding a savings account with a larger interest rate, one will be able to see the benefits of saving money. When applying for loans, it has also been found that federal loans are smarter to take than loans from such companies as Sallie Mae. Federal loans have stable interest rates that are usually lower than loans from companies. A new type of student loan has also come about that is called a peer-to-peer loan. Think of this as a Facebook for student loans. Friends, family members, etc. can loan money to students that is contracted and collected for by the website. This only problem with this type of loan is the interest on this loan isn’t deductible like federal and commercial education loans. When financing your college career it is important to take all of these tips into consideration.