Discover Student Loan Debt
Student loans are a great way to finance your college education but they can be
a nightmare if not taken with the right intention or the right
advice.
First, if you are able to afford school, don’t take loans.
Some schools may tell you that you need to take them or that it will establish
good credit. You never establish good credit by going
into debt. As a matter of fact, each new account on your credit reduces
your credit score for the first few months.
If you decide to take loans,
be sure you take only what you need and begin saving to pay them back as soon as
possible. DO NOT begin to pay the loan back before you graduate from
school. By doing this, you could be required to continue paying the loan
and lose the deferment and interest benefits. Seek professional advice on
your situation.
When beginning to pay your student loans, be sure to
consolidate them as soon as you can to ensure you get the best rate and the most
manageable situation. Having 5 loans can be a nightmare as they come due
at separate times.
Be sure you know your interest rate and repayment
options. Negotiate these things with your lender and shop around.
There are hundreds of qualified lenders that want your business.
Remember
that student loan debt is federally
backed and with new law changes is almost impossible to get out of paying them
back, even if you file bankruptcy.
In place of loans, you can also apply
for scholarships, work-study, and grants. Exhaust all of these options
before going into debt.