While we wish students could have a loan-free education, loans are a large part of the federal aid program. Remember you (and the federal government by virtue of the loans offered) are investing in your future.
Though they are paid back, loans are financial aid. These loans are often offered without reviewing your credit history and generally allow for repayment that begins after you leave college. You are seeking a degree now to improve your future employment options and earning potential to allow you more financial freedom and repay the loans that help you get there.
When taking out student (and parent) loans, you want to review key information. Issues like loan terms, interest rates, and origination fees are outlined to give you the most up-to-date information on loan programs available to you. Review these websites to understand your loans accepted and the limits on amounts available.
While loans help finance your education, be careful not to rely totally on loans. Think about the best uses for loan funding (tuition v. living expenses that will repeat when you are in repayment) and how you can keep your loan debt to a minimum. Making frugal and wise choices now while a student can make future repayment easier.
In addition to accepting loans as part of your financial aid offer, you will also need to complete steps that outline a fuller understanding of loan terms and conditions as well as an annual review of borrowing. You also need to complete legal paperwork to secure the loans.
Be sure to read online documents and materials carefully. Taking out loans for your education is likely your first time for borrowing money. You want to understand what will happen while you are in college and after.
Repayment processes involve your loan servicer who acts on behalf of the U.S. Department of Education to secure your funding and smooth payments later. Always work with your loan servicer, even if you are having difficulty with repayments. Loan servicers are working to assist you in keeping your loan out of default and avoiding situations that can cause further financial issues for you in the future.