CFM

5-11-15

Learning Goal

• I can understand college loans so I’m not surprised.

Student Loans

• Can you go to school without taking student loans?– Yes• Be awarded grants and/or scholarships as a result of

awesome grades and activities• Your parents are so rich they can pay for everything• Work full-time and attend school part-time

Student Loans

• Can you go to school without taking student loans?– No• Grades are just average so you can only get some small

grants or scholarships• The specific college you need/want is expensive• You want to get college done with

Fact or Fiction

• A better (more expensive) college gets you better jobs.

• Going to college will get me a higher paying job.• Going to college will make me successful• I always have to pay for college.• I’m not eligible for student loans because of what

my parents make• The average student debt is $35,000• I don’t have to pay back my student loan

Types of student loans

• Private Loans– Depend on credit history– Colleges– Banks

• Federal Loans– No credit checks– Stafford– Perkins

Deferred Payment

• Begin paying your student loan 6 months after you finished/left college • May be as much as 9 months with some loan.

• Returning to college after a leave?– Stop paying some loans until 6 months after you

finish the second time

Subsidized vs. Unsubsidized Student Loans

• Subsidized– Interest on loans is not paid until you start making

payments after finishing/leaving school• Unsubsidized– Interest on loans begin when you take the loan

out

Note: principle payments don’t begin until after school.

Ways to Reduce College Debt

• Become active in adult associations• Apply for as many scholarships/grants as possible• Live at home while in college• Part-Time Work– Work Study– Off campus work

• Watch your spending while at college• In-State colleges are cheaper than out of state

colleges• Loan Forgiveness Opportunities

Assignment

Go to the following site and summarize the 10 points in the article with one sentence for each point.

http://ticas.org/content/posd/top-10-student-loan-tips-recent-graduates