Should I get Student Loans? Pay attention to the details

11 de enero, 2017

“I’m just kind of taking whatever life gives me and hoping that I make the right decision.”  

~Amy Smart

“To be careless in making decisions is to naively believe that a single decision impacts nothing more than that single decision, for a single decision can spawn a thousand others that were entirely unnecessary or it can bring peace to a thousand places we never knew existed.”

~Craig D. Lounsbrough

Stop for a minute and read both quotes carefully one more time.  Making a decision about student loans is similar to the situations described in the quotes.  Some students make uninformed decisions and hope everything turns out ok – which 99% of the time never does.  Or some students take time and do their homework before making a decision and therefore remain in control of their circumstances.  

David Romero

Consejero Académico

y

Activista estudiantil

Académico: de 

Iowa State University

The purpose of the column today is simply to bring awareness about the need for doing your homework and consider all of the circumstances before you make decisions about whether student loans are the best option to finance your education.

Nowadays, going to college will require many of us to seek financial aid.  There are many students that will need student loans in order to invest in their future.  If you are one of those students thinking about students loans – make sure to consider carefully all of the details and conditions that come with a student loan.  The more you and your parents know about this topic will permit all of you to make better decisions about your financial future.  Remember, the goal IS NOT to achieve an education at the expense of extreme debt.  The goal IS to obtain an education and be able to thrive after you have achieved your professional degree.  The goal is to become a responsible borrower.  Scan the following QR code using your smartphone and check out a quick 2 min. video on what it means to become a responsible borrower.

Understanding the different types of Federal Student Loans:

Federal student loans are student loans provided by the government.  They are usually called “Direct Loans”.  There are 3 different types of Direct Loans provided by the federal government.

Subsidized Direct Student Loans:  The most important thing you must know about these types of loans is that you don’t accumulate interest during the time you are a student.  This is probably the best type of loans you can get as a student.  Interest begins to accumulate once you graduate school.

Un-Subsidized Direct Student Loans: These types of loans do accumulate interest from the moment you receive the funds.  Be careful on how much un-subsidized loan you take out.  Interest can build pretty quickly over the years.

Direct PLUS student loan:  This is your last resort.  This is a loan that is taken out by your parents in order to pay for your education.  The important thing you must know is that YOUR PARENTS are responsible for paying this loan.  Consider this option carefully.

Still interested in learning more about the different types of student financial aid offered by the government.  Scan the following QR code with your smartphone to watch a short video about the different types of financial aid.  Remember – Knowledge is Power.

Resumen en Español:

Busque asesoría profesional antes de tomar una decisión acerca de cuánto dinero deben tomar en prestamos estudiantiles.

El gobierno federal ofrece 3 typos de prestamos estudiantiles: 

1) Prestamos con Subsidiados Direct:  Estos son prestamos los cuales no acumulan interés durante el tiempo que el estudiante este matriculado en la escuela. 

2) Prestamos sin subsidio Direct: Estos son prestamos los cuales acumulan interés durante el tiempo que los estudiantes están en la universidad.

3) Prestamos Direct PLUS:  Este es un préstamo que se hace a nombre de los padres para que el estudiante pueda pagar por gastos que no fueron cubiertos por otros tipos de ayuda financiera.  Usa esto nada mas como un último recurso para costear tu educación.

Questions? Comments? I would love to hear from you. Join the discussion on Twitter and Facebook and VAMOS A ECHARLE GANAS… 

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