The Hidden Truths of Student Loans
Understanding all the ins and outs of student loans can be confusing. But, it doesn't have to be. These are some important facts you should know if you take out loans.
- Your school might approve more loan funds than you actually need. So, only borrow what is necessary.
- If you withdraw from school, you still have to pay back your loan.
- If you can't find a job, you are still responsible for paying back your loan.
- The amount you have to pay back can be more than what you originally borrowed because of accrued interest.
See how interest affects your payments.
- If you declare bankruptcy, your loans most likely won't "go away."
Many people assume that dependency status for student aid purposes is the same as that for income tax purposes. However, this is not true. The FAFSA® uses different criteria.
Never sign on the dotted line until you completely understand what you are agreeing to! If you take out student loans, you do have rights and responsibilities that you may not be aware of. It is important to educate yourself now, so you know what to expect in the future.