Posts: 2
Joined: 08 Aug 2012
Location: California US
Advice for Student Loans
Hi, 'm 22 and was about to start community college this fall but found out that I don't qualify for federal aid and would have to get personal loans in order to start. My school couldn't tell me why I didn't qualify but I think it might have had something to do with me not meeting a deadline for the paperwork. :confused:
Anyways, I have been doing some research and have found that the average interest rate is 6.8% for student loans.
I just moved to this state so I would be paying out of state tuition and this process was kind of rushed because I hadn't been planning on moving here. In fact I didn't know I was moving out of state until the end of May. If it wasn't so rushed I could have applied for other grants and financial aid.
After finding out that I would have to get a private loan I am now considering waiting for an entire year to start school. I had been working since high school but when I moved (I moved with my dad) I quit my job and was planning on just focusing on school but now I'm thinking about trying to find a part time job for a year and save money for school. I can also start preparing for next year by researching different grants etc and start applying for them. My dad thinks I should just start school but the interest rates are getting me. The minimum loan I would need for the year would be $8000 and with a 6.8% interest rate I would be paying $3000 of interest on it if I paid it back in 10 years.
What do you guys think I should do?
Thanks for the help.
Wed Aug 08, 2012 5:11 am
coaster Senior Advisor
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I think you should read through some of the threads about student loans. I suspect after reading a few of those that being "rushed" into a private student loan isn't going to sound very attractive. I suspect the waiting option is going to begin sounding more and more attractive the more you read.
Search function: student loan
~Tim~
Wed Aug 08, 2012 7:09 am
amlam New Poster
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Thanks Coaster, I'll do that.
Wed Aug 08, 2012 8:03 am
littleroc02us Moderator
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Are you saying that you only need $8000 for the entire year to go to school. Why can't you get a full time job and go to school? When I went back to college for my second degree at a technical college I worked 4 day 10 hour shifts making commission sales and went to college full time. 8k is very doable without loans.
Risk comes from not knowing what you're doing. (Warren Buffet)
Wed Aug 08, 2012 1:11 pm
Wino Senior Member
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Look in to finding an employer who will pay most or all of your costs. Most employers will pay at least 75% of your tuition, and many will pay 100% plus books and lab fees, but sometimes these are based on your grade, as well.
Wed Aug 08, 2012 1:20 pm
oldguy Senior Member
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If I understand - you will be living at home (dad) and going to a local community college? Why do you want grants and loans?
Why not just earn the $8000 and pay as you go, no loans, no interest to pay? You've been in the work force for 4 years, you have experience, can probably get a $15/hour job. If you work 20 hours a week, that is $15,600 for the year, maybe more if you work full-time over the summer. (I drove a truck all thru college, starting at age 19 - the 70 hour weeks thru the summer were a big help - my loans were pretty small).
Wed Aug 08, 2012 5:32 pm
Destiny Full Member
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The most common way to pay for college is, of course, through student loans. These loans can be through the federal government, through a private lender or through a family member. What these loans typically have in common are the terms of payment - payment will not be made until after graduation, and usually not until after a period of three months or six years after completing their education. The repayment student loan term may vary, and interest rates can lead to many being in debt for a period much longer than expected.
Mon Sep 03, 2012 9:01 am
littleroc02us Moderator
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quote:Originally posted by Destiny The most common way to pay for college is, of course, through student loans. These loans can be through the federal government, through a private lender or through a family member. What these loans typically have in common are the terms of payment - payment will not be made until after graduation, and usually not until after a period of three months or six years after completing their education. The repayment student loan term may vary, and interest rates can lead to many being in debt for a period much longer than expected.
Yes, and most people are even more broke after taking out student loans, find another way.
Risk comes from not knowing what you're doing. (Warren Buffet)
