Читать книгу Student Loan Solution - David Carlson - Страница 15

When I think back to when I took out my college loans, I don’t remember much. My parents filed my FAFSA for me. They chose the loans they thought I should take out. I was grateful I didn’t have to deal with it and went along with whatever they proposed.

I mean, the decision was made that I was going to college, right? I couldn’t control how much or how little my parents contributed toward my college education. I didn’t set tuition at the college of my choice. I never considered switching schools based on how much tuition was or what financial aid package I would receive. I chose the “best” college I got into, the one that “felt right” after the campus visit. The cost of college, and how much debt I would leave with, was an afterthought.

My parents may have explained the difference between subsidized and unsubsidized federal loans, but I never cared enough to truly understand. And even if I did understand the details at the time, I certainly didn’t retain this information. I didn’t keep a running tally of my loans. I didn’t review them regularly or see the impact of interest while I was in deferment.

While you may have been more hands-on with your student loans, I would bet a majority of borrowers relied on their parents or another authority figure to take care of their loan applications and decisions. It’s very common for graduates to not know what types of loans they have or how much they owe.

The reality is that when high school seniors are picking a college, they are making an emotional—not financial—decision.

Once a college is chosen, students typically do not switch for financial reasons. If their financial aid package, including loans, can cover the cost, students tend not to think about the impact loans will have when they graduate. Many have likely thought at one time or another, “Everyone takes out loans, so I should too.” Debt quickly becomes an afterthought.

It’s also not uncommon for those who have been out of school for a while, even years, to be a bit clueless about their student loan debt. They may have put it in forbearance or fallen behind on their loans and gone into default.

Understanding your loans is the first step to having control over your loans and your financial life.

The type of student loan(s) you have matters. It impacts:

•Repayment options, including eligibility for income-driven repayment plans

•Opportunities for loan forgiveness

•How interest is treated when loans are in deferment or forbearance

First, we’ll create a snapshot of your loans by finding all your loan information and putting it in a spreadsheet. This spreadsheet will be an important reference for the rest of the book.