If you’re thinking of getting a cosmetology license, you are probably researching beauty school options. One of the biggest factors to think about is the cost. The cosmetology program at Colleen O’Hara’s Beauty Academy costs $18,560. Books and supplies are $2,800. Federal financial aid is available, as either grants or loans. However, you have to make sure you understand how the loans work before you sign up for them. Here are five top facts about financial aid.
1. Loans can either be federal or private. Some people think private loans are better because they can have lower interest rates. However, federal loans have some incentives worth considering. They usually have fixed interest rates. You can also change the payment schedule based on financial need.
2. If you decide to pay off your loans in a short period of time, your payments will be higher. However, you’ll be paying less in interest. This means you’ll pay less overall if you can pay loans off faster.
How Long Do You Have After Beauty School to Start Paying Back Loans?
3. Find out how long the grace period is. Most loans have a period of time between when you finish beauty school and when you make payments. So you have time to get a job and start earning some money before the first payment is due. If you take out several different loans, make sure you know the grace period of each one. You don’t want late fees on top of the regular payment!
4. Learn about forbearance and deferment. Forbearance means that for a period of time, you can stop making payments or make lower payments. The interest will still add up, though. Deferment lets you stop payments on both the principal and interest. There are a set list of circumstances for deferment. These are good tools to have in times of unexpected financial difficulties. Make sure you understand how your loans deal with forbearance and deferment.
5. Be sure the loan makes financial sense for you. Figure out how long it will take you to pay back loans on an average salary once you have your cosmetology license. Maybe you want to save up for a while to take out less money in loans.
Read about the cosmetology program to decide if it’s right for you. Give our office a call for a tour.