Loans are a major form of self-help aid for students. As part of
your award letter, you may be offered a loan. A loan must be repaid
in full, including any interest and fees. Student loans have long
repayment periods and generally repayment will not begin until you
leave school. Interest rates vary, depending on the type of loan
you borrow. The promissory note you sign will contain the exact
terms of the loan you are borrowing. Keep your copy for
reference.
To Borrow or Not To Borrow
By accepting a Stafford Student Loan, you incur a binding
obligation to repay the loan in full, including interest and any
applicable fees. It is essential that when you plan for educational
costs, you also plan for future repayment of
any amounts you have borrowed. When making the decision whether or
not to accept a loan, you should be aware of all the requirements,
interest rates, repayment options, schedules and deferment
options.
Some pointers on how to borrow wisely:
- Don't borrow without first looking into other methods of
financing your education (scholarships and assistantships, for
example).
- Look into local resources of financial aid from community
organizations and civic groups.
- Repay your debt as soon as possible. The longer you owe, the
more you owe.
- To help secure your financial future, stay in touch with your
lender and repay your loan on time.