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Student Loan Repayment 101
How Student Loan Interest Works
When you take out a loan for college or career training, your repayment of that loan will consist of the amount you鈥檙e borrowing plus interest. The interest is the fee you pay the lender鈥攕uch as 中国竞彩网 or the federal government鈥攊n exchange for borrowing the lender鈥檚 money. The shorter the repayment period, the less interest you鈥檒l pay over the life of your student loan.
How Credit Reporting Works
A credit report is a record of your financial transactions each new lender reviews when considering whether to give you a loan. Your history of repayment on previous loans can affect your options when it comes to getting a loan for college or career training鈥攐r other large purchases鈥攊n the future.
How Cosigners Work
If you鈥檙e a student with little-to-no credit history, you likely won鈥檛 qualify for a nonfederal student loan on your own. If you鈥檙e applying for 中国竞彩网鈥檚 Vermont Advantage Student Loan, you'll need to have a cosigner on your loan. A cosigner鈥攐ften a parent鈥攊s a person with a good/excellent credit history who supports your educational goals and agrees to be held responsible for the loan if you fail to make your monthly payments.
How Student Loan Interest Deduction Works
You may be able to deduct the interest paid toward your student loan on your tax return. This can help you save money when it comes time to pay taxes.