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How long do you have to pay back a tuition

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Kayla’s Answer

Tuition to a school normally needs to be paid before you begin attending. However, there are multiple ways to defer these payments. Some schools allow payments to be made throughout the year but many people take out personal loans. Your personal loan will be the price of tuition + room and board - scholarships and grants. Depending on what lender you get the loan from, the terms of repayment will vary. It's important to weigh your options carefully. In general, the longer you take to payback the loan, the more interest will accrue. Basically the more the total you have to pay will be. Often times you know the interest rate ahead of time, but you sign up for repayment terms towards the end of college. They give a variety of options (could be 10 or 30 years) then you will make monthly payments. You will have to choose monthly payments based on your income and how much you can afford. While one option may offer a lower monthly payments it could be over a longer period of time with higher interest meaning the total sum paid in the end is more. In general, paying your debt off quicker will result in higher monthly payments and less total interest, but it is important you are able to afford these payments because penalties for being late can be very large.

As a side note, when weighing your college options you should think about how much each school costs and the type of education you will receive. Research your major and what a starting salary might be. There's nothing wrong with choosing a job with a lower income, but if you do decide to do this you should plan early by trying to economize and pick a cheaper, but still high in value, school. This will give you the tools you need to begin setting up your future budget and you will be thankful later by considering this before hand.

Kayla recommends the following next steps:

Weigh the costs and benefits of each school and look into what your possible monthly salary and monthly loan payments would be for each option.
https://www.bankrate.com/calculators/college-planning/loan-calculator.aspx
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Abhishek’s Answer

Depends on the terms of the loan (subsidized, unsubsidized, credit card, home equity, student loans, etc). They all have their own payment terms and rates.

Typically student loan rates are lower than other forms of credit, so its beneficial to pay them off last relative to loans with higher rates. However, the best path to financial freedom is to pay off all loans, regardless of the rates, so when you are paying off your tuition, you may want to make advanced payments when possible.

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Mechele’s Answer

Do you mean how long it takes to pay back a loan? Tuition can be paid through financial aid, loans, credit/debit cards, and cash

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Reandrea’s Answer

Generally, this information is provided when you apply for a student loan. Typically, it can be up to 10 years, but it depends on what type of loan and amount borrowed. The financial aid rep should be able to assist you as well.

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