While student loans are becoming more and more ubiquitous in America, not everyone is well educated on them. Student education loans can be overwhelming and complicated at first. Additionally, there are student loan myths that make things tougher to grasp. With some research and financial education, you can be on your way to fully understanding the impact of student loans on your finances and future.
American Consumer Credit Counseling wants you to know about these student loan myths.
Student Loan Videos
The excitement of college and all it entails can easily overshadow the mundane and bothersome topic of student loans. However they may seem to you, student loans are not to be brushed aside and simply accepted as reality. They can haunt you and your finances for years and years and years.
If you don’t fully understand your student loans, you won’t fully understand what you might be losing, delaying or even the total payout of interest and principal. Watch this video on 5 Things Every Grad Should Know.
5 Student Loan Myths
Knowing more takes research and some self reflection. Because of misinformation and myths flying around, you may need to re-educate yourself on a few areas of student loan debt. That’s why we have 5 student loan myths and the truth for you to examine.
- Private loans are eligible for Public Service Loan Forgiveness. Nope! Only Federal student loans are eligible for this program since the program itself is a Federal one.
- It’s okay to take on a lot of student loan debt. Student loan debt should be proportionate to your future career. You can’t take out $100,000 and enter the non-profit sector thinking you will have enough to pay those loans back comfortably. It also must match your future financial goals. If you want to buy a house or start a family young, student loan debt can delay that significantly.
- Student loan debt will go away in bankruptcy. Student loan debt will not be considered in bankruptcy. There are very few and extreme ways to get out of this debt.
- Student loan consolidation is the best choice. Consolidation can help some with their debt but not everyone.
- Interest will not accrue during the grace period. Depending on your loan type, interest may or may not accrue. Unsubsidized Federal loans will accrue interest during the grace period. These loans actually start accruing interest as soon as the loan is taken out.
Use this as a starting point to your student loan research. Speak to your college’s financial counselor or even your family’s advisor or other college grads carrying the weight of their loans. The more information you have, the better equipped you will be to navigate this type of debt.
If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today.
