Student Loan- any advice?

Superwife

Tue, Jan 21 2014, 2:17 pm

Have you taken out a student loan within the past 7 years? any advice? I am looking to take one but thought I would hear your experience first!

amother

Tue, Jan 21 2014, 2:40 pm

Yes. We would not have survived otherwise. I am in school full time, I am on an income based repayment plan and it helps us a lot.
That said, my loan likely qualifies for public forgiveness, so maybe I am not the best person to ask.

amother

Tue, Jan 21 2014, 3:09 pm

Don't get a private loan! Private loans are the ones thru WellsFargo, PNC, Discover etc. They can not be easily consolidated and require higher interest payments. If you can't afford to pay using federal loans then don't take the class! My husband made this mistake (before we meet) and I will be paying off his loans for the rest of my working career.... note I said I will because he is in a low paying field and even working full time he doesn't make enough to afford his loan payments!

Superwife

Tue, Jan 21 2014, 3:22 pm

Thank you for taking the time to comment. What is public forgiveness and what are government loans? I was thinking towards a private loan, but I did not know there were other options! I see I need more info. Also, if you take out a loan to pay for the classes, what do you live off of if you dont have a job??

amother

Tue, Jan 21 2014, 3:27 pm

Superwife wrote:

Second amother here:
First, I am in a very cheap State school. I work very hard, have a high GPA and plan to go to a good grad school because of my high GPA. My school costs a total of 6k a year; I get about 12,500 in student loans (I am in my last year). My DH works and we use these loans as well as his salary for some extra cash.
Government loans are federal loans. Look up FAFSA and see if the school you ant to attend is a qualified school.

Public forgiveness- some jobs involve working in the public sector (teaching, state jobs etc). If you get a job like this, some of your loan could be paid off a work perk.

morah

Tue, Jan 21 2014, 4:05 pm

I second the another above. Don't touch private loans with a 100 foot pole! They're essentially a legal mafia. Go to FAFSA website to read up on government loans. Also, do some research into what you can reasonably expect your salary to be. Don't borrow more than you're gonna make in a year...

groisamomma

Tue, Jan 21 2014, 4:38 pm

Do NOT go private.

The federal government student loans are currently at 6.8% and you don't start paying anything until 6 months after you graduate college. If you still don't have a job, they will defer the payment until you find one.

I work full-time and attend college full-time using student loans. Loan forgiveness is for public employees-they will help you pay for college and if you meet their criteria the federal government forgives you a portion of the money. I'm eligible for $17,500 of my loans to be forgiven in another two years (YAY!!). If you are going for a degree in education, look into the TEACH grant--I got $4,000 from them toward my education as well.

Good luck and do lots of research.

ange

Mon, Mar 10 2014, 8:46 pm

Not sure if you made your decision yet, but try listening to Dave Ramsey.com or on the radio and maybe he can convince you out of taking a loan. There are many cases of people who never finished their degrees, never got the anticipated job, etc. who are stuck paying off loans they can't afford.

He usually recommends saving up and delaying the schooling until you can pay for it, or getting a second income to cash flow it, etc. hard advice but very smart IMO.