Are you considering a federal student loan to help pay for your college or upgrading career school? See this educational video to learn about your responsibilities as a borrower. Find out what you should consider when taking out a student loan for college.
College or career school is a significant step in reaching your future goals, and there are many financial aid options to look at.
Did you know a federal student loan can be a good way to help pay for school?
A grant, work-study job, or a scholarship can be a huge help, but these forms of aid may not cover the entire cost of attending school.
So if you take a federal student loan, it’s necessary to know what you are getting and be a reliable borrower.
Getting a loan is a big decision. You might be paying your loans back for 10 years or more, so take your time to decide.
And remember to accept only the loans you need, because you must repay them once you’re out of school.
Here are a few things to keep in mind when deciding how much to borrow.
Do research: Make sure that your school is the right fit for you both educationally and financially.
Location, location, location:
The amount of money you need to borrow can depend a lot on where your school is located.
In-state schools and community colleges may cost less than out-of-state schools.
And, getting an idea of your future income is also important when deciding how much to borrow.
Starting salaries vary depending on your career path, so it’s worth considering about how the amount of your loan will influence your future finances.
Your student loan repayments should be only a small percentage of your salary after you graduate.
Once you’ve chosen your school and figured out how much money you should borrow, you must sign a promissory note, which is an agreement to repay your loan.
Make sure you keep a copy for your records.
If you take out loans, you must keep in touch with your loan servicer when repayment begins.
Your loan servicer will make this easy for you by offering web, email, and phone contact options.
If you make this investment in your future, being an informed, responsible borrower can pay off in a big way.