Laptop Student Loan

Q: Can a student loan pay for a new laptop?

A: The answer is yes. A student loan can easily be used to pay for a laptop, books, housing, transportation and any other education-related expenses that you have.

But before you rush out and apply for a student loan, consider all of your options.

Federal student loans like the Perkins and Stafford loan programs are eligible through your financial aid office and are the most affordable options students have. To be considered eligible for these loans, you and your parents will need to complete the FAFSA form online at www.fafsa.ed.gov

These loans come with low, fixed interest rates. But keep in mind that repayment on these loans does not begin until after you graduate, so interest might accrue for years on that loan. You have the option to pre-pay these loans while you are in school and you should consider that option.

Another option is a private student loan. These loans are available without completing the FAFSA, but most students will need a cosigner in order to qualify. These loans are also typically more expensive than federal loans and come with variable interest rates that can change several times a year.

Private loans are probably the most expensive option if you are just looking for some extra money to buy a computer.

Instead of taking out a student loan, you might also consider applying for a student credit card or a department store credit card to make the purchase. If you can pay off the debt in less than a year, this could be a cheaper option than using a federal or a private student loan.

If you do choose to take out a student loan, check with your school Financial Aid Office for more information and ask for their advice before accepting any student loan offer.

Which Student Loan Is Best?