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College Loans
The college that I know is perfect in every way for me right now is also the most expensive. I want to go there so badly, you have no idea. It really has the whole package that I'm looking, while my other schools don't. I would have to take out about $36,000 in loans ( over 4 years, not per year). I'm really trying to get my parents to let me do it. They want me to hear from people who have experience paying student loans. Did your life completely fall apart? or Was it no problem paying it off? Keep in mind, this isn't a $100,000 loan. It's 36. And I plan to do anything to make it easier to pay off (i.e. work in college, live an economic lifestyle). Any
advice and real life stories in regard to this would be fantastic. thanks!
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Ever since the credit crisis hit the student loan industry, it’s gotten harder to get private loan funds. Let’s face it – credit is tight these days. That means that banks are being much more selective in their lending decisions. Without any significant credit or income of their own, college students can experience some difficulty in getting private loans.
If you are in need of private loan funds for college, make sure you know what lenders are looking for in deciding whether to make a private loan to a student:
1.
Your Credit
Although you probably don’t have much of a credit history, lenders will always check your credit record to make sure you don’t have any student loan defaults, credit defaults, or serious delinquencies (like on your credit card, for example).
2.
Your School
Believe it or not, your school now has an impact on your ability to get a private loan. If your school has a high graduation rate, lenders believe you are more likely to graduate and find a good job, and therefore more likely to be able to pay back your loan. If you are finding that lenders do not work with your school, you need to check with your financial aid office to see if they can point you to a private loan lender who does.
3.
Your Co-signer
Perhaps the most important factor in the equation is your co-signer. Lenders are looking for someone to share responsibility for the loan with you, should you not qualify for the loan on your own. That could be a parent, relative or friend who has a good credit history and documentable income. If you are having trouble finding someone to co-sign the loan for you, read our section on Finding a Co-signer.
If you are have applied for a private loan, but were denied due to your co-signer’s credit record, you can always find another co-signer and try again. We know it’s difficult to find someone that wants to have your student loans on their credit report. If a private loan really is your only option, read up on the best ways to approach someone to become your co-signer.
Your school is a great place to start if you are looking for a private loan lender. If you are having difficulty getting approved for a private loan, make sure to keep your financial aid counselor updated. If you can’t get approved for a private loan, you’re going to need to find other options to pay your school bill. Don’t wait to discuss any problems with your financial aid department!
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It all depends on what you're going to university for.
Look up the average salary for people with your chosen career. Depending upon whether it's high-paying or low-paying, you may have different experiences.
For instance, I have friends who have taken out student loans for engineering. They can pay them back quickly because they're practically guaranteed employment at about $45 000 a year.
However, people who get an arts degree often find that they can't get into their chosen line of work. I worked at a call center for a while, and a lot of the people there were arts grads, working for minimum wage and trying desperately to cover student loans and rent.
One thing to remember is that often if you fail out of school, your loans come due right away. I would suggest not working during the school year unless absolutely necessary. Your first priority should be studying.
I live in Canada, where tuition is subsidized. I pay about $7500 a year in tuition, and that's high for us. However, I've managed to pay my own way without taking out any loans just by getting really good summer jobs and working hard through the school year. It is possible to have that balance.
Also remember that books are incredibly expensive. Budget out another $800-$1000 per year for those.
Are you renting? I managed to rent a room in a house for $350 a month, utilities included. Groceries cost me $100 a month, because I was really ridiculously thrifty. Entertainment was $10 a week, which is pretty spartan for most people. So yes, it's possible to live on less than $500 a month as a student. Just keep in mind what you'll need if you're going to live away from home.
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How much of a burden debt is depends on how you handle it. I haven't been through it yet (I'm going to college for free), so I'm just going to pass on what I heard.
- One of my mom's friends, after getting her degree and a job, continued to live with her parents. This is pretty much looked down on in the adult world ("OH DAMN. SHE'S 25 AND LIVES WITH HER MOMMMM. WHAT A LOSER."), but really, it's smart. Because she had less expenses, she put virtually ALL her paychecks into paying the loan off. And she paid it ALL off in like one or two years.
- My friend's brother got his engineering degree about a year ago and now lives with four other guys. This also saves him a lot of money, and leaves him with about $2000/month of spending money after paying all sorts fo bills and whatnot. If you were in this position, you'd have about $2000 a month to pay off your loan.
- Another one of my mom's friends, however, can't afford big wedding because she's already up to her neck in college debt and has yet to pay it off.
Paying off loans just requires you to be SMART. It's much more than just paying the minimum value that they require; if you do that, it'll take forever to pay off and with interest, you will end up paying MUCH more than you borrowed.
See if you can stay with your parents or live with other people so you can have as much money to yourself as possible. Also, don't waste money on things you don't need; put as MUCH as possible into paying the loan off so you can get it out of your way and on with your life.
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