Loans Blog

So, you’re going to college. That’s awesome. How you plan to pay for it? You were passed over for scholarships. Your parents make “too much” money for you to qualify for government aide. What are you options? For some students, a student loan is the only way to go. Now, as will all loans, it is important for you to consider all the ramifications of this choice.

If you get the student loan, what does that mean for you as far as your credit rating goes? Well, many students are afraid of going into too much debt. While this is a valid concern, student loans are not looked at in the same light as, let’s say, credit card debt. Student loan debt is looked at as ‘good’ because it is debt incurred in an attempt to earn a higher salary down the road which increases the likelihood of repayment in a faster time frame. This is something to consider.

How much should you apply for? Do you plan to work full or part-time during school? If you do work, how much time will it take away from your studies? These are all questions students should ask themselves. Also, if you do plan to work during your education, you may want to apply for a lesser amount.

When you have finished school, you are given some time to find a job before you are expected to begin making payments on your student loans. Now is the time you must really consider how you’re going to repay your loans. If you begin to default on them, you will more than likely lower you credit rating, credit score, etc. This will in turn hurt you down the road and during different milestones in your life (applying for a car loan, purchasing a house, etc.).

Start thinking about your future today.