skip to content
  • Get Ready!
  • SELF Loan
  • Minnesota College Savings Plan
Minnesota Office of Higher Education

Home > Paying for College > Financial Aid You Must Repay (Student Loans) > How to Evaluate a Loan

 

How to Evaluate a Loan


 

Make sure you choose a loan that best meets your needs, but keep in mind that the cheapest loan is not always your best option. Because loans must be repaid, you should plan your debt financing carefully:

If there is terminology on this page that you don't understand, please review our loan terminology page and read these sections together so you can reference unfamiliar words.

Each loan has its own characteristics and features. These features must be carefully compared to decide which loan is best for you. Compare your options side-by-side and include:

  • the total cost to repay the loan (including the fees, principal and interest)
  • how long it takes to repay the loan
  • the amount of the monthly payments
  • the penalty you'd pay if you were late on a payment or default
  • the impact that the loan would have on your total financial package (how it would affect your grant, scholarship, and work study awards)
  • whether it can be consolidated with other loans at the time of repayment

For more information on the loans available to you:

 

More Information

 

Related Links