What to Consider Before Taking Out A School Loan
A school loan can be a great way for a student to pay for college now and then when they have a job pay back the loan at their own pace. The only problem is that sometimes the student who is fresh out of college does not find a job or high paying job and thus paying back a loan is a hard plan to follow. If you were fortunate your loan was not collecting interest while in school, but now that you have graduated interest can be collected, so what should you do?
1.Work During School
No matter what kind of work you choose to do, working is a good plan if you have a loan to pay back, and if you can work during school then you will have a jump start. Granted we would all love to go to college, stay in a dorm and live care free for a few years while earning a degree, but that dream is hardly obtainable for most people. Thus if you can get by with working a few more hours at the local grocery store or StorageMart each week to help save for that loan you took out then do it.
2. Check Your Loan
There are basically two different kinds of school loans, the one that does not collect interest until you are out of school, and the one that does collect interest while you are in school. If you can then obviously the loan that does not collects interest until graduation or six months after would be the best plan. But even a loan that does collects interest in most cases will be under inflation and thus not to much of a worry for a student, just make sure you have a plan for paying it off.
3. Forget The Loan, Set Up A Payment Plan
Many schools such as community colleges have payment plans that can be set up for students to pay off their school debts. The payment is typically during the current semester and will break up the once horrible lump sum into 4 to 5 payments over the semester. This way you do not have to be out a large amount of money at one time, but you can pay it off over a few months period. Also community college in comparison to a four year university is a good way to save money at least for your first two years of general education.
4. Make a Decision
Sometimes if you really think about it you may not need college, I know this is a hard pill to swallow. But many times people will go to college fresh out of high school not knowing what they want to do, just because everyone else is doing it. Take a year or two off, asides if you can not get any grants then it does not matter when you go to school right now, work a little and find out if college is for you before racking up a huge debt.