There will come that time when you’re done with school and you will be required to start repaying your student loan.
Many of the student loan boards give a grace period time after you graduate or leave school before you begin repaying your student loans. This time is set to prepare you on a loan repayment plan and for you to get financially stable.
Sometimes students borrow more than they need which might become a problem when paying back. Before you borrow the money there are key issues that must considered:
Choose an appropriate student loaning board, for instance here in Kenya we have HELB (Higher Education Loans Board) among others. Be sure to read and understand all the different terms and conditions to know which one will work for you.
Most people don’t read the fine print on documents. This is a sin most, if not all of us, are guilty of. It is important however, to read the fine print on loan documents and any other document that puts you in a legally binding position. This way, you avoid getting into unfair agreements you can’t get out of. Read and understand the terms and conditions because there’s a lot of valuable information about the service being provided written there. It might be a long and tedious process but it’s always better to be safe than sorry.
Figure out how much you need by finding how much the college fee is, your cost of living and also how much the rest of the family will contribute, you do not need the whole amount of the money offered if it’s going to be extra.
Student loans are loans like any other, they must be repaid with interest which may accumulate your total loan balance if left unpaid. You can also find a part-time job to cover some of your expenses. This can help reduce the loan balance. Find out what your total loan balance is. This will help you determine your repayment plan.
Student loans hurt drop-outs the most. Ensure you clear studies to avoid rendering the loans useless or if unavoidable, get a job to pay up the debt. Remember this loan is supposed to help you get through your studies.
College education is an expensive undertaking, most students will need to consider an education loan of some sort to help cover for their tuition fee. The advantage of taking student loans is that they help you complete your studies on the way to achieving your dreams of getting a good, well-paying job with which you can easily pay the loan amount once you gain financial freedom.
While student loans do provide access to an educational experience that might be otherwise impossible, they do have many hitches. Student loans have to be repaid whether you graduate or not. There is a large number of people making student loan payments despite never getting a degree. These payments are hard for people whose income levels do not compare with their monthly loan repayments.