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What happens if I can't repay student loans?
I signed up for college and start my classes this week but I have a big problem. I applied and got a big student loan to carry me through this year of college or whatever and I just don't know about being able to repay it later. They want me to repay it 2 years after I graduate and I'm like I don't think that might happen because of the economy and how hard it is to find a job. I'm going to be like a teacher maybe but I'm just starting out with basic classes. What happens if I can't repay the college loans anyways though?
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You can extend the due year of the loans after you graduate and if you attend a bigger college, they will continue to increase on that same payment thing. You can make arrangements on how much you want to pay on your students loans too. It can all be worked out. I am going to a 40000 school a year and they are working with me.
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I go to school now, so I haven't started repaying any loans, but from what I can tell, the program is very fair. Don't even think about not paying them back, because if you borrowed from the government, there's just no way to avoid it. Think of it as a forced good credit rating. It seems, though, that the program is very fair, and as long as you are giving it an honest effort, they're willing to work with you. Recently, Obama relaxed the payments. It used to be that a person had to pay back at least $40.00 per month, but now it goes by a small percentage of your income. Just remembre this, the more you borrow, the more you're going to have to pay back, so don't borrow just because you can. I know so many people who get it all in one lump and spend it all before the middle of the semester. Please put yourself on an allowance and pay your monthly bills through January right now, so you don't have to think about it again. Don't go overboard on Christmas, etc., play up that "broke" college student. Don't loan money to your friends and family.
I am 39, going back to college, and the one thing I can tell you is you will want a decent credit rating when you get older. It will be the difference between whether you own a house, or whether you rent an apartment. Don't worry about paying back the loan, just yet, worry about budgeting your money.
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