Look Before You Leap: What You Need to Know About Student Loans
Nonprofit credit counseling agency Take Charge America offers five
eyes-wide-open tips for borrowing money for college
PHOENIX–(BUSINESS WIRE)–Despite near-constant warnings about the student loan crisis, debt
continues to rise. On average, 2016 graduates carried more than $37,000
in debt – up six percent from 2015 – and the upward trend shows no signs
of flattening.
“Many students feel they have no other choice but to borrow money for
college,” said Sarah Hamilton, student loan supervisor for Take Charge
America, a national
nonprofit credit counseling and debt management agency. “But, there
are plenty of options for getting through college with minimal debt. The
trick is a responsible, eyes-wide-open approach to student loans.”
Hamilton offers five tips for funding college:
1. |
Find “ free” money: College-bound students should start looking |
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Then, students should complete the Free |
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2. |
Pick the best loan: Students should ensure they understand |
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a. |
Interest rates on federal loans are fixed, while private loans’ are variable. A private loan rate may be lower at first, but it may jump up without warning, offering no protection from high interest rates over the long-term and no predictability in payment schedules. |
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b. |
Rates on federal loans have dropped in recent months, making them an even better option. |
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c. |
Repayment terms on federal loans are usually better. For example, borrowers may defer payments while in school or unemployed, while some private loans require students to make payments immediately. |
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3. |
Do the math: Students must realistically consider the earning |
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4. |
Consider community college: Students can supplement their university coursework with community college classes to fulfill degree requirements at a lower tuition cost. They should be sure to review their state’s articulation agreements to ensure their community college coursework will transfer to their four-year college. |
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5. |
Live like a starving college student. Students of generations past |
For more tips and information on student loans and other financial
resources, visit Take
Charge America.
About Take Charge America, Inc.
Founded in 1987, Take Charge America, Inc. is a nonprofit agency
offering financial education and counseling services including credit
counseling, debt management, student loan counseling, housing counseling
and bankruptcy counseling. It has helped more than 1.6 million consumers
nationwide manage their personal finances and debts. To learn more,
visit www.takechargeamerica.org
or call (888) 822-9193.
Contacts
Aker Ink
Andrea Aker, 602-339-7339
andrea.aker@akerink.com