🎓 Tips for taking out student loans

If you need money for college, taking out student loans can be a viable option. However, it’s all too easy to take out more loans than you actually need, saddling yourself with debt for years after graduation. Many students don’t take the time to research their loan options and sometimes end up choosing bad deals inadvertently.
Take a look at this list of tips to help you make wise decisions when taking out student loans:
DO: Compare your financial aid offers in detail.
As you receive college acceptances with financial aid packages attached, it’s important to read the fine print. Two loans for the same amount of money could offer drastically different terms that could make a big difference after graduation. Take a close look at the interest rate, the monthly payments, and the length of time you’ll need to pay off the loans to get a clear comparison.
DON’T: Take out loans you may not be able to pay back.
While you may not have a clue as to what job you’ll have after graduation, research is available to let you estimate what kind of salary you can expect your first year after graduation. Try to avoid taking out loans that total more than that first year’s salary.
DO: Borrow what you need, and no more.
You don’t have to accept the entire amount offered to you in a student loan. Crunch the numbers to see what you really need to close the gap between you and your family can contribute to your college costs and the actual cost of living and education, and don’t say yes to a larger loan just because it’s been offered.
DON’T: Start with private loans.
You’re going to get a much better deal if you take out student loans provided by the federal government. Start with those before you even consider any private student loans available to you, as the latter will typically cost you more in the long run.
DO: Look for “free” money.
While loans have to be paid back, scholarships and grants do not. You might be surprised to learn the diversity of scholarships available based on factors that can range from where you went to high school, what companies your parents work for, or how great an application essay you can write. Always prefer scholarships and grants in your financial aid package over loans.
DON’T: Wait to start paying your loans back.
You can start repaying your student loans while you’re still in college, and doing so can be very beneficial once you’ve graduated. Your loan may not require payments for a few years, but by starting early, you can do your part to keep interest from piling up.
Visit American Debt Relief to find out how we can help you.
DO: Consider a career in public service.
If you plan to join the military, work as a public school teacher, or work in any level of government as a career after college, you may be eligible for loan forgiveness after 10 years of making payments. Only certain loans qualify for forgiveness, so check out the details and recalculate the amount you can afford to take out based on the new payment information.
While your college degree can boost your employability and earnings potential dramatically, burdening yourself with student loans can hinder your options as you go through life. Ask every question you can think of, and make sure you get answers you understand to ease your future financial burden.
Visit American Debt Relief to find out how we can help you.
