ronmac13
Senior Member
Whats a good company to go with?
thanks for the advice
can you not get HOPE?
Okay student Loans - absolutely stay away from at all costs. First of all unless you go into a profession (Doctor - Laywer - Dentist etc.) where you will have the opportunity to make decent money quickly you will almost never pay them off. I have known dozens over the years who work regular jobs, $30,000+ married with a couple of kids and owe tens of thousands of dollars of student loans and cannot even pay on them and are hounded like dogs about them.
Also you cannot bankrupt them or ever get away from them. I am 56 and know people who are still paying on student loans they got 35 years ago. Big trouble is if you pay on them for awhile and then become stuck in hard times and can't pay for awhile then the interest eats up all you have paid on them and you still end up owning the same amount when you can pay on them again.
Another situation - get the loans, find a nice job, marry and want to buy a house. Put on the application that you own $40,000 in student loans and see how fast "rejected" gets sstamped on it - also be frugal in making payments and see that on your credit report. If you get student loans just be prepared to rent for a long time.
Another, and this happened recently, a younger friend of mine dated a really nice girl for a couple of years, married and then she remembered to tell him about her student loans she never has paid on. Oops - now those loans are his loans as well.
Best to pay your way as you go through college even if it takes years than have the "student loan" noose around your neck for the rest of your life.
hey, not all student loans are bad... some of us can't make enough to pay for tuition as we go (like me) and i got federal student loans which carry a lower interest rate. current tuition prices for full time are around $2000 a semester now!!
stafford federal loans are available once you fill out your FAFSA ... check with the school you are going to and find out all the necessary requirements - some schools won't approve the use of federal loans if you're not making satisfactory academic progress. Check with your financial aid dept. and see who they might recommend as a lender. Apply for HOPE (if eligible) and the Pell Grant (which doesn't have to be repaid). Those also require the FAFSA to apply.
my stafford loan is at 7.2% and i cant remember how long the pay off is .. but its a manageable $70/mon that i can pay MORE on any time i want.
Don't be fooled with that Stafford Loan... I graduated in December and the interested starting accruing in May at that 7.2% rate. 7.2% DAILY interest rate. They wanted about $100 for 120 something months
Thankfully I had the money and my loans were paid in full the next day.
I would highly suggest looking at a credit union or bank for a school loan.
Darcy, I agree with you. I have school loans and I have no problems paying them back. If you are responsible, it can be done.
The last bit of advice I can give is make sure you are going to the right school for the degree. By this, I mean don't go to an Ivy League school for an education degree. My sister wanted to go to a local/private school because it was close to home. However, she is paying about 2-3 times more than if she would have went to a state school where she could get the same degree. After one year she had more debt than I had in 5 years. If you are going to a university for an undergraduate degree, keep in mind that it is what you make of it. Many schools offer degrees, but its up to you to get the experience and go the extra mile that will make you marketable so why pay $50,000/year for a degree you can get for less.
Shop around and make sure to read the fine print.
I can not speak for any one else here and won't begin to,but my experience has been like Darcy's. My advice is to to make sure you live with in your means and never have a credit card that you can take to Bass Pro and make unnecessary purchases with. Nothing worse than to have student loan debt and then credit card debt on top of all that. Student loan debt is "good debt" because you are getting something in return. Your education will help you make more money in return help you pay those debts off. You need to take all advice that's been given and make it work for you. I think the idea of only using the loans to pay for tuition is a great piece of advice. That's what I did.