Skip to content

Latest from FSA: 5 Things to Consider When Taking Out Student Loans

May 8, 2014

ThingstoConsiderFederal student loans help make many students’ educational dreams possible, but they should be taken out with caution. The U.S. Department of Education recently came out with five things for students to consider when taking out loans:

1. Research starting salaries in your field

2. Keep track of how much you’re borrowing

  • Students should think about how much they can afford to repay
  • Student loan payments should only be a small percentage of one’s salary (8% is ideal)
  • Visit nslds.ed.gov, select Financial Aid Review, and log in
    • Borrowers can use the Repayment Estimator to calculate what their monthly payments might be based on their current loan balance

3. Understand the terms of your loan

  • Keep copies of all  loan documents

4. Keep in touch with your loan servicer

  • Students should notify their loan servicer if they change their name, address, or Social Security number or when they graduate, withdraw from school, drop below half-time status, or transfer to another school

5. Stay ahead of your student loan payments

  • Once borrowers’ loans enter repayment, they are required to make their scheduled loan payment as determined by their repayment plan
  • Students should take advantage of flexible repayment options and contact their servicer immediately if they are having difficulties making payments

For the full article, visit: http://www.ed.gov/blog/2014/04/5-things-to-consider-when-taking-out-student-loans-2/.

 

Megan Freese, Communications Intern

Megan Freese, Communications Intern

No comments yet

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: