Hello all. I have never taken out a student loan before. I managed to get through my undergrad and first semester of grad school debt-free. However, I am at a point where I cannot continue paying out of pocket.
I hate debt. I did not even own a credit card until my mid 30s, and that is always paid off rapidly. I am not well-versed in student loans or how to navigate them. My only knowledge is that they are incredibly predatory (in the US at least). I do not want to be stuck in massive debt and want to pay it off quickly.
I have calculated and will need $20K in loans to finish my master's program (5 more semesters, approximately $4K each semester). What student loans are best and which should be avoided? Or would I be better off seeing if I could get a loan from my credit union? I have good credit. I do not want to drown in student loan debt (or any debt) as I have seen many other students struggle with.
Student Loan Question
byu/HappyLifeCoffeeHelps inStudentLoans
Posted by HappyLifeCoffeeHelps
3 Comments
Federal direct loans at $20,500 annual limit will be your best bet. You don’t have to take the whole amount each year. Interest rates change July of each year, usually announce a few months ahead of time.
In my opinion, the least predatory of any options out there and doesn’t require a credit check. It also gives you the benefit of income driven repayment options so you can manage payments easily based on your income rather than standard payments that private loans offer.
Complete the FAFSA for the academic year you plan to borrow, then master promissory note, and loan entrance counseling to get everything set to be distributed through your college.
Your first step is to see what you can get for federal loans by filling out the FAFSA. Federal student loans aren’t predatory and come with several borrower protections like access to income driven repayment plans and forgiveness.
How did you manage to get through undergrad and grad school debt free?