by Mikel
(Tucson, Az, U.S.)
Student loans seem like a great way to help get money for college. And they are. However when you are thinking of getting student loans there are some things you must consider.
Live and learn. I learned the hard way about managing student loan debt. I hope you can read and learn and come out better than I did. I had student loans when I was in college. At the time, I didn’t care how much they were or what the repayment terms were. All I wanted to do was to finish college.
If I knew then what I know now, I would have done three things differently:
1) I would have been a lot more diligent about searching for grants and scholarships while still in high school. There was no internet then, so it did take more effort to go and look through books in the guidance office or library, but it would have been worth it. I had little guidance through this process but the internet is a tool that most students these days can use on their own, even if no one is there to guide them. Gotta love those keywords!
2) I would have only taken what I needed in loans. In college when you need money to live on, travel, shop, etc., it is very tempting to take everything that is available to you and live comfortably. Only sign for what you need for tuition, fees, books, room and board. If you have to, work part time for pocket money. You will be glad you did later in life.
3) Move heaven and earth to pay your loans when they become due and pay them on time every month! Interest continues to accrue even in the case of hardship deferment or forbearance. Over time my payments ended up doubling with only around 25% of the minimum payment being applied to the principal! I even filed for bankruptcy, but my student loans were not discharged along with my other debts. I may never finish paying them off now, and I am not exaggerating! Don’t let this happen to you!
If you absolutely have to take loans to make it through, appreciate the availability of funds for you to make it through college and start your career. With your high paying job that college prepared you for, pay it back based on the terms you agreed to when you accepted the loan. Smile broadly after making that last payment. Best wishes!
Read more tips on Paying Off Student Loans from other students and parents who have been through the student loan process.
by Lizette
Loans can be seen as a savior when you begin college but when it comes to paying them off after graduation they become a load of stress. Careful with the decisions made because the loan’s balance can never stop rising.
I am an incoming freshman to Cabrillo Community College in Aptos, CA in the fall. One reason why I was held back from attending a four year university was because of loans. My parents owe thousands of dollars for my sister’s tuition. She was the first to attend and graduate college in my family and it was something completely new for my parents. It was a last minute process that my parents had no other choice but to use loans to be able to pay for her tuition. Later, my sister took out another loan under her name.
About year ago my sister suggested that they should freeze their loans for a year because we hit a rough economic stage. The bank was able to compromise with freezing the accounts but what didn’t freeze was the interest. The interest itself in about a year raised the balance thousands of dollars on both loans. Banks can be very flexible to even stop your payments for as long as you need too but your balance won’t stop.
Now, my parents and sister are trying to look for ways to be able to pay back those loans because I am starting college in September of this year and I will be needed financial help. I chose to take a different route in college because one, we didn’t have the money and two, I will be able to save and help my parents. I am trying to get scholarships to try to avoid having the burden my parents with more loans and owe thousands of dollars. I will be studying to become a Registered Nurse. It will take me many years and many classes to get there and to “pay” for all of my classes with loans.
It is best to put loans as a last resource to pay for college. It is best to do a lot of research on financial help for college. Search for scholarships online; apply for FASFA, government fee weavers and grants. If you're going to use loans research for loans with a low interest rate; the lower the rate the less money you will owe the bank. The financial aid offices help a lot with any questions or need of guidance. The government can help in many ways and there are many resources to use to get free money for school.
Read more tips on Financial Aid Funding from other students and parents who have been through the student loan process.
Scholarships for 2023 - It is never too early or too late to work on your scholarship searches. If you are part of the high school class of 2023, you should work on your scholarship and college search now. See our list of Scholarships for High School Seniors
FAFSA - The official 2023 - 2024 FAFSA is now available. See information about FAFSA.
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