Expert advice on taking out student loans
NerdWallet: typical student starting college this year, taking on loans will owe $37,300 when they graduate
(InvestigateTV) — A new Sallie Mae and Ipsos survey finds 49% of families borrow money to pay for college, up from 41% last year.
Kate Wood with NerdWallet said people often don’t think about the rising costs of everything associated with college, not just room, board, and tuition.
“For families that are looking ahead to college in the future the earlier you can start those conversations, how you are going to pay for college, the better off you will be,” Wood said. “Because you’ll have a stronger understanding of how much you might need to borrow, what sources of funding you have available to you and what kind of debt your student will be looking at coming out on the other end.”
For students currently looking for ways to fund college next year, Wood said just because they are offered a loan doesn’t mean that they need to accept it.
“NerdWallet research found approximately 1 in 5 student loan borrowers regret borrowing more than they actually needed,” she shared. “So just because you’re being offered those funds, doesn’t mean you need to take them. It might be giving you more money right now, but in the future, you are simply saddling yourself with additional debt.”
Those looking for extra money while in college should consider taking an off-campus job to lower the need for loans, Wood advised.
She said to fill out the Free Application for Federal Student Aid (FAFSA) each year to see if there are any scholarships or grants available since they don’t have to be paid back.
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