Student loans are great when you are in college, and don’t have the money to pay for school. But once you graduate and your 6 month grace period is over, then the payments start. Most people think that when you get out of school, you are going to have a $50/month payment, which is a drop in the bucket. Well, this is not always the case, and is getting harder to find with the cost of school spiking upward. The reality of it is, most student loans are about as bad as a car loan, if not worse, here’s why:
Let’s say you spent $50,000 in student loans, and you got a great consolidation loan after you graduated which put you at 3% interest. Well, even with a 15 year note, your payments are still going to be around $350/month. Ouch! How many of you out there have more money tied up in student loans?
Long Repayment Periods:
The previous example is pretty close to real life. My student loan repayment plan was 15 years. So when you compare that to a car loan, which typically is no more than 7 years in a repayment period, you are looking at the equivalent of buying 2 nice vehicles!
No Way Out:
That’s right, there is almost no way of getting out of paying for student loans. If you don’t already know, student loans survive bankruptcy! You can’t even go bankrupt and rid yourself of that ugly student loan. So the best way out of student loans is to be educated about them before going in to school.
You’ve seen the bad news, now let’s look at how to avoid this fiasco. As a high schooler, and I mean, even as a freshman, start seeking out the free money. There are an unbelievable amount of grants, scholarships and other means of acquiring money for college that you don’t have to pay back. Check out How to Find Scholarships for links and information on starting your quest to find that free money for school. It is well worth the investment.