subject: Is It Wise To Take On Student Loans? [print this page] Student loans is a common option for those entering college or the university. Because tuition fees continue to increase each year, students are finding it necessary to take on more than just one student loan. Before they know it, payments will be due on various dates. Does this mean taking on a student loan is a bad idea? Ideally, taking on a loan should be a student's last resort.
Students Alternatives
Apply for scholarships. There are those for individuals who have not yet entered college as well as for anyone who already started school. You may also request for a tuition reimbursement from your employer if the company provides that option. See if you can obtain financing if you are enrolling in a graduate school.
You can save up as you go by working full time during summer and working part time during the school year. Or, you can become a part-time student if you're willing to sacrifice the shorter time it takes to graduate for a longer one so you can work at the same time. Finally, consider taking a heavier class load to save money on lower tuition fees.
The Reality
When you are talking about university expenses, these options may not be enough, though, and you may still have to consider a student loan. Loans are ideal approaches but everyone's financial situations vary and we would be hard-pressed to find someone who can easily do it without any form of financial assistance. To find out if you indeed require a student loan, analyze your present circumstance.
Can You Afford College?
Some people actually think that paying college tuition without a student loan is impossible. Is it really? It is possible to cut down on things you don't really need at the moment. If you find you indeed cannot afford to pay for college on your own, then a student loan is a good option.
Are You Getting The Best Loan Amount For You?
Some lenders offer much more than what you need. Aside from the tuition fees, lenders typically include the cost of all kinds of education expenses like books and school supplies, some of which you may not want. So calculate how much you really need from that loan to avoid unnecessarily high rates.
The Benefits
In a way student loans are good, because unlike credit card debt, a student loan is seen as "good debt" due to the possible earnings increase that a college education may provide. So if obtaining a student loan is the only way you'd be able to get a decent job after graduating, then it should be worth it. In addition, if in any case you're having difficulty paying up, you can consolidate your loans so that your monthly rates are fixed and lowered, and you can have more time to pay up with a longer term.
It's normal to have some issues with your student loan. If you do face some issues, a student loan consolidation company can lump together all your existing student loans so that you get reduced, monthly fixed rates and you only have to pay on one due date to one company. The most ideal time to consolidate is right after graduating before your grace period expires.
by: Kirsten Seymour
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