Be Careful with Student Loans

According to Fin-A.org, 2/3 of college students graduate with some kind of debt, the average is actually around $20,000. That is no small chunk of change way back when you’re just starting your carrier. So, here are few helpful tips to make it more manageable.

First you got to shop around for student loans. Make sure you track out the ones that are backed by the federal government like the Stafford or Perkins loans. These usually have lower fees, lower interest rates and better terms than private student loans. In fact you should really try to avoid those private student loans completely if you can because a lot of experts say they generally have higher interest rates and sometimes they also include additional or even hidden fees.

Also when you’re choosing a loan, make sure you don’t borrow more than you can realistically afford to pay back. According to student lender Sallie Mae 9.4% of borrowers fell behind on their payments in 2008. Consider how much you’ll be making in your career after you graduate from college as well as how many years it’s going to take you to pay off that loan. Otherwise you might bite off more than you can chew. And finally remember that in order to qualify for a student loan you’ll need to fill out their free application for federal student aid so check with your guidance counselor or your financial aid administrator for those upcoming deadlines.