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In the long run, how beneficial is taking out a loan for college?

I'm just curious so I know all of my options for college and my future financial stability. #loan #college

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Vincent’s Answer

In addition to repayment schedule and loan factors, make sure you submit a FAFSA to ensure you're eligible for all types of financial aid.

https://fafsa.ed.gov/

There are many different loan types so research what works best for you / what you qualify for. In general, loans via the government (Federal loans, Stafford loans, etc.) have favorable interest structure and usually offer deferred payments (ex: no repayment until you finish school). Also take note of fixed interest rate vs. variable interest rate loans. More research can be done here:

https://studentaid.ed.gov/sa/types/loans/federal-vs-private
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Sarah’s Answer

Hi there! Loans can be a great option in paying for school, but there are several factors to consider before you do. I would suggest visiting one of the loan repayment calculator sites (http://www.finaid.org/calculators/loanpayments.phtml) to help you understand what your monthly payments may be after you graduate, and the type of salary you will need to make to pay them back.

Make sure to look into scholarships, work-study opportunities, and working a part time job to help cut down on overall loan amounts to help you be debt free as soon as possible! Good luck!
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Simeon’s Answer

It's alright to get student loans for college. The biggest thing is to avoid getting more than you can afford to pay off with the jobs you're considering post-college. It's an investment and there are a lot of programs out there to help you pay off your student debt. Just make sure you're not getting a degree without a career payoff.
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Joel’s Answer

It is important to try to consider which college degree you plan to attain. If the degree has good prospects towards a high paying salary (Check https://www.bls.gov/ooh/occupation-finder.htm) then it is most likely any loans will be beneficial since you will be able to pay them back more comfortably than you would with a smaller salary.
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Ashley’s Answer

Loans can be entirely necessary, but you should be careful to review your aid package and consider not taking out the full amount that you are offered. If you're going to work during school, try to consider how much your work will offset hour loans and decrease your loans by that amount. I advise going directly to your financial aid office and seeing if they can find any additional grants or scholarships available. Sometimes there is money left that hasn't been allocated to students that you may qualify for. Also, consider your living situation. I lived on campus, which was more expensive than I realized. My classmates who moved close off campus and split housing costs needed much less in aid. Usually meal plans are not worth the cost, and you'll be better off buying your own groceries. Budgeting is paramount if you want to come out of college owing as little as possible. Budget now to make budgeting your loan repayments easier after graduation.
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