I'm going to college next year and i lack money, finacial aid and scholarships is still inadequate, and my friend informed me that school loans is "just a big trap".They won't allow you to pay back ur debt all at once but in small amount monthly which will cause the interest rate to build up in time and keep you in debt for a couple more months and when it is finally all over, u find urself paying double the amount u borrowed.I'm just reiterating what my friend said so enlighten me
2006-08-28 07:12:38 · 6 answers · asked by Anonymous in Education & Reference ➔ Other - Education
do everything in your power to avoid students loans. The interest rate is high. If you can't find a job immediately after you graduate and get the money to start paying on the loan, you'll have to default on it. This will ruin your credit rating before you even get into a decent job.
2006-08-28 07:17:04 · answer #1 · answered by Edward 3 · 1⤊ 5⤋
All loans are designed to make the loaner money. You can pay back your loan as fast as you want. It is just very hard to do that with a $30,000 debt. A lot of college kids think that they will be able to pay off their loans fast because of their "high paying jobs" that they will get after school.... but that doesn't usually happen. Some get lucky and get jobs that will pay off their loans for them (VERY HARD TO FIND). Some get a starting bonus (IF YOU did REALLY well in school). If you have the money to pay for college out of pocket, DO IT! All debt is bad because you will always have to pay more then you borrowed.
2006-08-28 07:15:48 · answer #2 · answered by Anonymous · 4⤊ 0⤋
My loan rate is much lower than that of one you can take from a bank. Also, I pay above what my required payment is per month, which is just fine. I owe about $120 a month, and I pay $150 to avoid more months of interest. They served me well, and if you can find a good place to loan from, they are worth it. Check with your financial aid person at the college for help.
2006-08-28 07:19:21 · answer #3 · answered by sethle99 5 · 0⤊ 3⤋
This is SO NOT TRUE. If you go through the US Department of Education, you can pay back your loans in full with no penalty. You are REQUIRED to at least make a monthly payment, unless your are in forebearance...which means that you have a circumstance which keeps you from paying....or if you are in school you don't have to pay and that is called a deferrment...glad you are asking to get the facts!
GOOD LUCK IN COLLEGE!!
2006-08-28 07:17:28 · answer #4 · answered by Fee4Lyfe 2 · 1⤊ 3⤋
Don't listen to your friend. You can pay it back as quickly or as slowly as you want. The best part is, the interest rate will likely be lower than any other debt you have.
2006-08-28 07:17:57 · answer #5 · answered by Anonymous · 1⤊ 3⤋
There is some useful advice here.
2006-08-28 20:06:27 · answer #6 · answered by Anonymous · 1⤊ 1⤋