Heading to college this fall? Now is the time to plan for paying your college bills this year.
Are you considering a student loan to help you cover your costs? Make sure to give it careful thought before signing the loan agreement.
Student loans may seem complicated. But like all loans, what you end up owing is based on three factors:
- Your interest rate,
- Your payback time, and
- Your total amount borrowed.
It is important to understand these factors before you take out your first loan. Each factor can have a big impact on how much you end up paying over the life of the loan.
Watch this video from the nonprofit College Money Matters to see how these three elements come together to determine just how much you will owe over time.
Want to Learn More?
Be sure to look at our latest articles on loans and debt:
For Parents: PLUS Loans Are an Option But Proceed With Caution
Parent PLUS Loans Part 2: Putting Off Payments and More Help
Kim Nauer is the founder of UnderstandingFAFSA.org and a higher education expert at The New School. Her latest questions: How does anyone read a financial aid letter? And will this all-new FAFSA in the fall really be simpler?
