When you have beautiful beaches and Spam is a household staple, it’s hard to find a better place to live than Hawaii.
There’s some bad news too. Students graduate from four-year public and private colleges in Hawaii with an average of $26,092 in student loan debt, according to the Institute for College Access and Success. But that’s better than the national average of $37,172.
Sometimes, taking out student loans is necessary for attending college. Here’s how to get the best rates on Hawaii student loans, whether you’re looking to get loans as you head to school or hoping to refinance after you leave.
Hawaii student loans
After you fill out the Free Application for Federal Student Aid (FAFSA) and find out which grants and scholarships you’ll receive, you might not have enough money to cover the rest of your college costs. Here are the different ways Hawaii residents can get student loans.
Federal student loans
If you qualify for federal student loans, you’ll probably end up with Direct Subsidized Loans or Direct Unsubsidized Loans. With subsidized loans, the government covers your interest while you’re in school. It doesn’t cover your interest on unsubsidized loans, however, which means you’re responsible for interest when you get your loan. Your award letter will let you know the loans for which you’re eligible.
Private student loans
After grants, scholarships, and federal student loans, you still might not have enough money to pay for college. That’s where private student loans come in. While federal student loans are issued by the government, private student loans are issued by individual lenders. Compare private student loan lenders to find the best one for you.
Banks and credit unions, including HawaiiUSA Federal Credit Union, also offer private student loans. With HawaiiUSA, you can apply for money you can use for tuition, fees, and books, among other things. There’s a 25-year repayment period, which means lower monthly payments when it’s time to start repaying your loan.
Unlike with most federal loans, though, your credit score matters when it comes to taking out a private student loan. Your credit score can impact your interest rate, which means you could pay more in the long run for borrowed money.
Once you’ve chosen a plan, you can see how long it’ll take you to pay back your loan with our student loan payment calculator.
Hawaii student loan forgiveness
If you had to take out loans for school but are worried about paying them back, you might qualify for the Hawaii State Loan Repayment Program (HSLRP). This is a grant funded by the federal government for health care providers in Hawaii.
Physicians, social workers, and counselors are among those who qualify for repayment help. But a two-year commitment at an approved HSLRP location — a place with a proven shortage of health care professionals — is required. If you’re licensed to practice, see if you qualify for HSLRP.
How to refinance Hawaii student loans
If you’ve already graduated from college and are struggling to pay back your loans, you might want to consider refinancing your student loans. Refinancing could lower your interest rate and give you more flexible repayment terms.
Plenty of refinancing options are available, so choose the one that’s best for you. But remember that refinancing isn’t for everyone. You could give up federal benefits such as loan forgiveness and income-driven repayment plans if you go this route.
Make sure to do your research.
Limit Hawaii student loans now and later
Always apply for grants and scholarships to get as much free money as you can before exploring student loans. Then, after filling out the FAFSA, decide which loans you need and which ones are right for you.
Keep your options open and limit how much you take out in student loans. It will result in less debt and less hassle for you when it comes time to repay your loans.
Interested in refinancing student loans?Here are the top 6 lenders of 2018!
|Lender||Rates (APR)||Eligible Degrees|
|Get real rates from up to 4 Lenders at once
Check out the testimonials and our in-depth reviews!
|2.56% - 7.40%||Undergrad & Graduate||Visit SoFi|
|2.57% - 6.32%||Undergrad & Graduate||Visit Earnest|
|2.58% - 8.12%||Undergrad & Graduate||Visit Lendkey|
|2.80% - 7.02%||Undergrad & Graduate||Visit Laurel Road|
|2.54% - 6.65%||Undergrad & Graduate||Visit CommonBond|
|2.90% - 7.34%||Undergrad & Graduate||Visit Citizens|