Back to college: Avoiding mistakes with student loans


THAT’S A LOOK AT YOUR ACCUWEATHER. >>THANK YOU VERY MUCH. AMY. IF YOU’RE A COLLEGE STUDENT, IT’S THE SEASON FOR TUITION BILLS. BUT A WARNING BEFORE YOU START BORROWING TO PAY THOSE BILLS. BAD STUDENT LOAN DECISIONS NOW COULD COST YOU BIG MONEY IN THE FUTURE. 7 ON YOUR SIDE, NINA PINEDA, HERE TO EXPLAIN. >>IT COULD BE SHOCKING IF YOU DIDN’T GET THEM TO ANTICIPATE TO OPEN THAT MAIL AND SEE THE FULL AMOUNT OF WHAT CLASSES WILL COST WHEN A STUDENT DOESN’T EVEN ENROLL. THAT’S CALLED SUMMER MELT. BEFORE YOU PANIC, SOME ABCs ABOUT BEING SMART WITH STUDENT LOAN OPTIONS. >>I DON’T WANT TO PAY THIS. WHERE IS THIS MONEY GOING TO COME FROM? >>Reporter: HEADING TO LIMA COLLEGE IN THE FALL, SHE NEEDS A STUDENT LOAN, BUT WORRIED ABOUT THE WHOLE PROCESS. >>AND HOW TO APPLY PERFECTLY, NOT TO MAKE MISTAKES OR APPLY FOR THE WRONG THING. >>PEOPLE MAKE MISTAKES ALL THE TIME. IT’S SOMETHING THAT’S EASILY AVOIDABLE. >> SHE FOUNDED FRANK TO HELP STUDENTS NAVIGATE AFFORDING COLLEGE. WHEN TAKING OUT LOANS, SHE SAYS TAKING OUT TOO MUCH MONEY IS MISTAKE NUMBER ONE. >>SO YOU DON’T REALIZE YOU COULD CUSTOMIZE YOUR FINANCIAL PACKAGE. WHICH MEANS THE DIFFERENCE BETWEEN SAVINGS AT THE END OF THE DAY. >>Reporter: AND REMEMBER INTERESTS COULD COMPOUND INTO CRUSHING DEBT. >>SO IT IS BETTER TO BUDGET AND TO BORROW LESS AND ACTUALLY NOT NEED TO PAY IT BACK WITH THE INTEREST. >>Reporter: WHEN YOU BORROW, CHARLIE SAYS STUDENTS MAKE THE MISTAKE OF NOT SECURING A CO- SIGNER IN ADVANCE AND ONE WITH A GOOD CREDIT SCORE. >>YOU NEED TO FIND SOMEONE WITH A GOOD FICO SCORE, TYPICALLY 670 AND ABOVE TO ACTUALLY SIGN ON THE DOTTED LINE WITH YOU WHEN YOU TAKE OUT THAT STUDENT LOAN. >>Reporter: WITH MORE AND MORE STUDENTS GOING BACK TO SCHOOL IN A LATER LIFE, PARENTS ARE NOT AN OPTION. FIND A FRIEND OR RELATIVE WILLING TO HELP YOU BEFORE APPLYING. DON’T MAKE THE MISTAKE OF BORROWING FROM A PRIVATE LOAN PROVIDER YOU DIDN’T READ FIRST. READ WHAT OTHERS SAID ABOUT DEBT COLLECTION HARASSMENT. DON’T BE LURED BY BETTER RATES. YOU MAY BE BETTER OFF WITH A LOAN FROM UNCLE SAM. >>AT THE END OF THE DAY THE BENEFITS THAT COME WITH FEDERAL LOANS, THEY’RE SO AMAZING. IT’S NOT NECESSARILY A GOOD IDEA TO GO WITH SOMEONE WITH A BETTER RATE VERSES LOOKING AT BENEFITS LIKE DEFERMENTS. IF YOU DON’T HAVE A JOB WHEN YOU GRADUATE, YOU’LL HAVE TIME TO PAY IT BACK. >>THE BIG TAKEAWAY, LOAN PAYBACK STARTS SIX MONTHS AFTER GRADUATION. TAKE CLASSES WITH GOOD JOB PROSPECTS TO LEARN A REAL SKILL AND ENTER THE JOB MARKET RIGHT AWAY, START PAYING DOWN THAT STUDENT LOAN. SHE’S SEEING THE MOST HIRES WITH NURSING, MEDICAL BILLING,

2 comments on “Back to college: Avoiding mistakes with student loans”

  1. NBaBall3r26 says:

    nothing new tho..

  2. Curtis Graves says:

    I can't believe they advised finding someone to co-sign "your" student loan with you that has a good credit score. Awful advise. Anyone with a good credit score and good sense knows better than to co-sign your student loan. How about you spend two years at community college or go to a nearby state school to avoid out-state tuition or private school costs?

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