What is the best way to pay back a student loan?
Lots of my friends who recently graduated moan about how difficult it is to pay back a student loan?
I’ve got one as well, but I don’t understand what their problem is.
Don’t get me wrong, it’s lots of money, but you can get different payment plans and pay it for a longer period of time but in smaller sums, or am I wrong?
You must realize that the people who lend you money want to make profits for themselves.
That is why the more time it takes you to pay the loan, the higher they make your interest rates.
It is all probably in your contract, somewhere in tiny print.
I didn’t understand what was all the fuss about when I took my loan as well. The problem is that the more you extend the period of payment, the higher interest rate you have to pay back.
That’s why people try to pay it back as soon as possible.
And it is hard because the amount of payment is too big out of the salary that you’re paid when you’re just out of the college.
it is a little better if you have a subsidized loan, so the government (state) will pay your interests rate.
But I think the main problem is that people don’t really earn enough in their first or second job to pay it easily.
you’re naïve if you think that loans are easy to pay back.
People who lend them are in this business for a long time, and in every type of the payment plan, there is a clause that obliges you to pay more.
You’ve probably only got the loan for your first year. You need to renew it every year, and that adds up to a pretty big number.
If you go for a MA, it can be up to 150K plus the interest rates, which is not easy to pay in any way.
the problem is that people misuse their loans spending them on housing or labs, or even thing unrelated to the tuition.
from my experience, I know that monthly payments for your student loan can easily raise from $75 to $200. so $15,000 loan turns into $60,000. Especially, it can all end badly when you take a loan from a private company, they have many legal tricks that eventually make you pay much more.