Things I wish I knew about Student Loans

Ah Student Loans, the bane of my exsistence, and unlike Anthony Bridgerton, it is not the object of all my desires.

My family had little experience with the financial aid and student loan process. So when it came time to apply for aid we had NO IDEA what we were getting ourselves into. If I am being honest, my story is not unique. I am one of 43 million borrowers who needed to take out Student Loans in order to get an education. 

Here are some things I wish I knew before taking out Student Loans:

• Refunds are NOT free money

Refund checks happen when you have more Aid (Grants, Scholarships, Loans etc.) than you do Tuition and Fees. While there is no wrong way to use the money from the refund it is important to know that keeping the money means that you will have to pay it back later, with interest. I had always viewed the refund checks as "my money" or "free money" and used it however I saw fit, and while some of those costs were necessary (like paying my rent when I lived off campus) I could have just as easily returned the money and essentially saved myself thousands of dollars in debt. 

What to Do With a Student Loan Refund Check

• Private Loans are brutal and do not work with you

The first time I got the notification that I needed to start making payments on my private loans, I cried. The monthly payment was high and I had yet to find a full time job. After calling the provider, I was told my only choices were to either make the payment or defer and collect interest. Private Loans have variable interest rates (the interest rates change) and tend to be higher than the interest rates for Federal Loans. I felt like I was drowning. Thankfully things worked out, I started working here at the library and began to aggressively payback my private loans. I had always thought loans worked the same regardless of who you got them from, I had thought repayment plans based on income was a courtesy every loan provider offered. If you have to take out private loans, be sure to do your research and be aware of what it is you are signing Future You up for.

• You can pay off your loans early

When my sister started college I gave her two pieces of advice 1. That your Professors don't care if you pass or fail, your success in college is on you and 2. Repay your loans ASAP. Both private and federal loans have a grace period, usually 6 months from when enrollment ends or drops to part time. I waited to repay my loans until my grace period was up, and for me it worked out since I am eligible for the Public Service Loan Forgivness(PSLF). However, if you have private loans or know that PSLF is not something you'll be eligible for, than paying off some of your loans early can help you save money in the long run. While you are in school your loans do not collect interest, meaning that there is nothing being add to your overall debt. 

Start paying off your student loans as soon as possible, even before graduation

•  The resources are there, you just have to look

In an effort to soothe my financial anxiety I started deep diving into student loans, and there's a lot of information out there- it's just spread out. Younger me decided that regardless of where I went to school I was going to have to take out loans so I just went full speed ahead without any real idea of what I was signing up for. As an adult this has led to a lot of financial anxiety, and while that is better now I definitely could have prepared myself better. In an attempt to prepare you for all that lies ahead the Business and Career Center has developed subject guides on College, Finacial Aid and Student Loans. A place that holds all the information you may need on these topics so that you don't have to spend hours researching and digging through the internet to find vague tidbits of information.

Student Loans and Debt Repayment

College & Financial Aid Resources

There is a lot more I could add to this list but the main takeaway is while intimidating, knowing the ins and outs of your loans can help you better prepare for the future.