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If you have heard the terrible stories about student loans and how fresh college graduates shiver at the thought of having to service the loan even before they get a decent job, chances are high that you are thinking twice about going to college. The truth is that there is a rising student loan debt in the country, but a lot of facts have been twisted, especially by the affected persons. The following are myths about college debt debunked.

1. College Debt Must Be Repaid And There’s No Other Option

The truth is that any loan must be repaid, but student loans are special because they are usually advanced to individuals who do not have a job. If you are not able to repay your student loan debt, there is an alternative – student loan forgiveness programs. Nearly half of college graduates who have a student loan qualify for these programs. While it may come with some strict requirements, it can help you deal with your college debt.

2. College Debt Cannot Affect Credit Ratings

This is a popular myth that can be blamed on poor understanding of financial matters by some students. The truth is that college debt can tarnish your credit history if you fail to service it when it falls due. Failing to pay your college debt can make it very difficult for you to get a mortgage or a personal loan in the future.

3. College Is Unaffordable Without A Huge Student Loan

Going to college in the United States is a costly venture. That is a fact that nobody can dispute. However, you can get through college without applying for a loan. All you need to do is take advantage of grants, live frugally and get a part time job.

4. Bankruptcy Is The Best Option To Shun College Debt

That is not true. Bankruptcy is an option of last resort. Besides, you have to prove many things to be declared bankrupt. For instance, you must prove that you have unsuccessfully tried to pay off your college debt, that you’re going through financial difficulty and lastly, that you are struggling to maintain a basic standard of living.

Student loans are usually very helpful. Therefore, college graduates should do their best to pay off these low-interest loans. Follow Us For More Of Great Articles on Education, Family, and More.

478229269Even though you may have heard a lot of bad things about student loans, you will probably still need to learn about them and apply for them if you want to get a college education. Learning about them now will help you out when you start paying them back. Keep reading into the following paragraphs to learn more about this subject.

Do know that you are probably going to have a post-graduation grace period from your student loans before you are required to start making payments back. This usually refers to the amount of time you are allowed after you graduate to pay back the loan. Having this knowledge of when your payments are scheduled to begin will avoid incurring any penalties.

Start your student loan search by looking at the safest options first. These are generally the federal loans. They are immune to your credit rating, and their interest rates don’t fluctuate. These loans also carry some borrower protection. This is in place in case of financial issues or unemployment following your graduation from college.

Paying down your student loans should be done using a two-step payoff method. First, ensure you make all minimum monthly payments. If you have money left over, apply that to the loan that has the highest interest associated with it. This will cut down on your liability over the long term.

Never ignore your student loans because that will not make them go away. If you are having a hard time paying the money back, call and speak to your lender about it. If your loan becomes past due for too long, the lender can have your wages garnished and/or have your tax refunds seized.

It is impossible to ignore the fact that student loan debt has the potential to cripple young graduates financially if it is not incurred in a deliberate, careful manner. The most effective way of protecting yourself from overwhelming debt after graduation is to educate yourself about the subject before seeking a loan. The advice you’ve just read will prove invaluable to you.

71261834Even though very controversial within recent years, anyone planning to attend school to attain higher education should carefully consider getting a student loan. Learning everything possible about student debt is the key to ensuring that it does not end up overwhelming you after graduation. Read on to learn more.

Start your student loan search by looking at the safest options first. These are generally the federal loans. They are immune to your credit rating, and their interest rates don’t fluctuate. These loans also carry some borrower protection. This is in place in case of financial issues or unemployment following your graduation from college.

Be sure you know about the grace period of your loan. Each loan has a different grace period. It is impossible to know when you need to make your first payment without looking over your paperwork or speaking with your lender. Be sure to be aware of this information so you do not miss a payment.

When paying off your loans, go about it in a certain way. To begin, pay the minimum every month. Second, pay anything extra to the loan with the highest interest rate, not the one with the highest balance. That way, you will end up spending a lesser amount overall.

If you’re having trouble arranging financing for college, look into possible military options and benefits. Even doing a few weekends a month in the National Guard can mean a lot of potential financing for college education. The possible benefits of a full tour of duty as a full-time military person are even greater.

It’s impossible to see that student loans can really cause a lot of problems, especially if the person doesn’t take their time to learn about them. It’s best to learn about student loans before selecting one. The advice you’ve just read will prove invaluable to you.