Managing Student Loans

With college costs jumping by leaps and bounds over the past few years, the majority of students seek out financial aid in the form of student loans to pay for college. Being a college student myself and facing much loan debt, I see too many of my fellow students signing on the dotted line for offers that are either a sure way to life long debt or a complete scam.

Never use a credit card to pay for college tuition expenses; the interests rates are generally double what you’ll pay on traditional student loans and unlike student loans , credit card companies show little mercy.

Don’t sign for a loan without reading the small print. Only go with respected, trusted student loan companies like AES Success or Sallie Mae. Companies like My Rich Uncle are generally backed by banks or credit companies looking to make money off of those with little or not credit or knowledge of credit.

If at all possible go through your school’s financial aid office to secure as much government and school aid as possible before seeking private loans. When seeking private loans use the resources available to you from your school’s financial aid department to select loans with lower interest and flexible payment plans.

Any unsolicited offer for consolidation or new loans should be ignored as many of these companies are scams harvesting your existing credit/loan information to lure you with lucrative (and often fake) offers of no interest and other unrealistic loan perks.