College expenses continue to soar and students are increasingly turning to student loans to finance their education. But the mistakes you make as a young college student can affect your later life so always make sure you understand the terms you are agreeing to. Keep reading to learn other ways to avoid costly student loan mistakes.
It is important for you to keep track of all of the pertinent loan information. The name of the lender, the full amount of the loan and the repayment schedule should become second nature to you. This will help keep you organized and prompt with all of the payments you make.
Do not hesitate to “shop” before taking out a student loan. Just as you would in other areas of life, shopping will help you find the best deal. Some lenders charge a ridiculous interest rate, while others are much more fair. Shop around and compare rates to get the best deal.
Choose payment options that fit your financial circumstances. A lot of student loans give you ten years to pay them back. You may discover another option that is more suitable for your situation. For instance, you can take a longer period to pay, but that comes with higher interest. Therefore, you should pay it once you make money. Sometimes student loans are forgiven after 25 years. Continue reading