When You Don ’ t Graduate … and Still Have to Pay it Back !
Ben took out a large loan for his first year of law school before dropping out . We asked him what he would do differently :
What do you wish you had known before taking out your student loan ?
I wish I had realized what my monthly payment would be once I entered repayment ($ 500 / month for my $ 61,642.16 loan !), especially in relation to my monthly income and other bills . It is very easy when you are signing on the dotted line to think that loan repayment is way off in the distant future and that you ’ ll be making plenty of money when you graduate . The reality is that the repayment of your loans represents a significant opportunity cost .
What advice would you give teens who are considering large student loans ?
In my opinion , loans should only be used by those with a strong conviction about their future career , and only as a last resort . If you don ’ t know what you want to do , be very cautious about borrowing a bunch of money to figure that out . If you think you have an idea about a career you ’ d like to pursue , try to get experience in that field before borrowing money to see if you actually like it . Also , educate yourself about your repayment options before accepting the loans , and try to be realistic about your future earnings when thinking about your ability to make those payments . Lastly , there are a number of grants and scholarships available , but you have to be proactive . Talk to your financial aid office and any community groups you belong to like your local church about any aid that is available . Your school may even cover part of your tuition if you work for them while you attend . Those other funds are unlikely to pay for your entire education , but any amount that will lower your loan balance will be great !
DID YOU KNOW ?
Most colleges offer interest-free payment plans
“ Tuition payment plans break down your unpaid balance into affordable monthly installments . There ' s no interest , setup fees are affordable , and it ' s easy to enroll . The plan is optional but charges such as tuition , fees , housing , and residential dining plans can be paid through the plan ." – Andy Green , Director of Admissions and Recruiting , Jacksonville State University
High school students can reach goals faster and go further at a top 50 public university .
Explore today at uaearlycollege . ua . edu / potential to learn more about earning college credit while still in high school .
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