How will a student loan impact me?

Student loans are a great option, and often times, the only option when it comes to managing your finances while going to school. Some of us need the funds to help with tuition, housing and transportation costs, while others may simply use it as a backup plan to manage unexpected expenses. No matter what your reasons are for considering a student loan, there are a few things you should think about before signing on the dotted line.
  • Be sure it’s what you want. Once you sign that loan application, you’re making a promise to repay it, regardless of whether you finish school or not. Make sure you’re committed to your education.
  • How much money do you need? Do you plan to work while in school? Working, even part-time, can help reduce the amount of money you’ll need to borrow and can even help with paying back your loan sooner.
  • Commit to repaying your loan as soon as possible. The longer the repayment term, the more interest you’ll pay in the long run. That’s money you could be putting away into savings.
  • Take advantage of the grace period. Most student loans come with a grace period before you’re required to pay it back. Use this as an opportunity to start paying down your loan and you’ll be debt free sooner than you think!
  • You’re responsible for the loan until it’s paid in full. Should you miss a loan payment or declare bankruptcy, it will affect your credit score and hinder your ability to receive financing in the future. Alternatively, if you have a guarantor, like your parents or a close relative or friend, it’ll leave them on the hook to repay your loan, and that’s not fair.
  • What are your plans after school? If you’re looking to purchase a bigger ticket item upon graduation, such as house or a car, remember that your ability to make those payments in addition to your student loan payments will be taken into consideration during the approval process.
  • Travel plans might have to wait. If you’re hoping to travel during or after school, you may need to consider putting those plans on hold in order to focus on working to help pay back your loan.

Ready to learn more about student loans? Let us help you out, so you can focus on your studies. Give us a call at 1.866.863.6237.