Everything You Need To Know About Student Loans

In the ninth episode of The College Student's Guide To Money, Chelsea covers everything you need to know about taking out student loans. Whether you're still in college or recently graduated, try to learn everything you can about your debt situation!

The Financial Diet site:

[wrenchguy]

If you're going to take loans, PAY FOR IT ASAP! Work in college, even if it's like pizza hut or a small desk clerk. Every penny will save you from the future you. I promise.

[pedroportillo]

I paid mine off 2 weeks ago, but I’m still all for canceling student debt. It’s an anchor preventing many from moving forward with their lives and many of the loans were predatory to begin with.

[QuestionEverythingButWHY]

“A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.”
― Mark Twain

[alainad]

I paid for my first year with no parental assistance and completely out of my own pocket--no loans (this was the product of working since I was fifteen and taking a gap year during which I worked many 60-70 hour weeks). I'm having to take out loans for my sophomore year, so this was incredibly helpful.

[emilyanne]

As an Australian, the fact that you need to pay interest on your federal loans is terrifying

[davidliang]

A lot of my friends think they'll never be able to pay off their loans. But there is a light at the end of the tunnel, with the right financial planning there is always a way out!

[Jasminblack]

Student loan and credit card debt are the two things I see mostly everybody posting. I never see the one I’m looking for it’s called medical debt. I have not been able to find anyone on YouTube or Google with information on how to understand or get help for it. I know there’s not a lot of information but no one talks about it.

[f.-j.j.]

Unfortunately most of us wise up too late. My friend got a full ride for undergrad, but took out loans for graduate school. He managed to pay them quite fast, dedicating everything that wasn't going to bills to it. Now he's done and trying to prevent his baby cousin from making the same mistakes. The poor kids eyes sparkled when he realized he could take out more money than he ever dreamed of. He's so excited to sign on the dotted line. Trying to talk to him so he'll make adjustments (cheaper school, work part time, community college then transferring etc) is very difficult. He doesn't understand our point. We figured he'll have to learn from his own mistakes.

[nancynolan]

Sadly, in this economy, there are VERY few majors that are worth borrowing a lot of money for. Further, most students who are 18 years old have no idea of their intended career path. Taken together, this is a recipe for disaster.

[markwalter]

Two mistakes I made, please don't repeat: 1) Don't think you can go and hideout in Graduate School to avoid the recession or bad job market. 2) This is my big mistake. You get a 6 month grace period to repay your student loans "only one time!" If you use it all or part of it, then that's it. I graduated from Grad School in May unemployed. Everyone was saying to me, "You have 6 months to find a job and get your s**t together." No! Auntie Sallie Mae wanted the next payment June 1st. Why? I used a few months of my grace period between Undergrad and Grad School. It hurt my credit. Also, being employers in the financial industry pull your credit; it hurt my job hunting prospects.

[Vanessa_Hernandez.]

I’m a Junior in High School and my can I say this was extremely helpful. I’m already worrying and thinking about my future.. thank you so much

[magikalie]

Wonderful video. I am also approaching 30 years old, so I felt that last part deeply. Life does go by very quickly. People under the age 25-ish have no idea. I appreciate you helping us.

[personalfinance]

Student loans can be a great investment to a fulfilling and rewarding career, but only if done correctly!

[readwithrach]

This is so interesting as in the uk the repayment is calculated as a percentage of your wage above a certain amount, so works much more like a tax, and is written off after 30 years so most don't pay the full amount. This is obviously for the government loan but the tuition loan and maintenance loan (for cost of living) is separate and maintenance is means tested based on parent income, not credit score. This means those that have the financial support from their parents don't get as big a loan as those that don't. This means very few should need extra loans if they are responsible with their money. So glad I don't have to deal with this it would stress me out so much.

[meganecho]

This is really great info. I was so stressed about life and money and just did the minimum for a long time. I deferred for some time and my loans will almost cost me twice as much as what I took out by the time I pay them off. I finally sat down and took a hard look- it was painful! And now have them under control and am on a plan to aggressively pay them back. This part has been rewarding. The whole student loan situation is emotional and stressful and challenging. Another video on this topics and ways to pay them off faster would be great for those early in the process!

[ss]

Its' truly astonishing that this is a thing in America (from Germany here).

[scarpfish]

We've really got to throw stones at the worship of academia where we don't question the price tag, and just think of taking out loans as part of the deal. Esspecially when the price of your education may be multiple times your expected gross salary. It is out of control and like it or not, giving students access to borrowed money is contributing to that problem.

[AsToldByShaie]

i recently got into my dream MA Journalism program. I'd be an out of state student. i didnt have any loans for my BA...thinking about taking out just 10k for the first semester and also work while im in school to have most of it paid off within 3 years.

[CaseyBurnsInvesting]

I can’t even fathom how many people have asked me what their interest rate means

[Mahkmet]

I've budgeted to keep paying a bit (though not nearly as much as the regular payment) toward my loans during the pandemic even though the repayment and interest are currently deferred. Every bit of these payments goes directly towards decreasing the principal instead of being consumed by interest. It's not a lot but I think it will pay off in the long run.