# Student Loans



## tryinhard (Jul 19, 2007)

Hello!
Does anyone know the ins and outs of student loans? Thinking about going to a trade school and am looking for a way to pay the bills while I am in school. I am thinking I am going to be approved for a grant to cover school.

Thanks,
TH


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## simplegirl (Feb 19, 2006)

Talk to the admissions office at the school. There should be someone there that can help you with your questions. Sorry I can't help.


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## ChanceTheRapids (Apr 29, 2011)

Student loans usually have a pretty good-to-decent interest rate. Better than a personal loan, anyway. I'm not sure how it would work with a trade school, but I would imagine they would handle those as well. When I took mine out, you could begin paying on it immediately, or postpone until after graduation. 

If you do get one, I would recommend paying on it immediately, and paying far more than the minimum payment due. 

good luck!


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## PerhamMN (Oct 24, 2011)

Take it from someone who owes more in student loans than he makes in an entire year: Stay away from them!!!

If I could do it again, I would have pushed off school for a semester or two and saved up cash to pay for living expenses. Also, don't be afraid to hold down a part time job during school. I did it all through college and think I'm better off for it. See about scholarships beyond tuition grants as well. Overages can be used for living expenses.


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## wes917 (Sep 26, 2011)

Another here who wishes they didn't take them. I paid for my associates by working full time and living with my mom. After graduating and working a few years I decided I wanted to get a bachelors degree in business. After taking out loans for that I make exactly the same as I did without it because I graduated during the recession and there just aren't any jobs here but now I have an additional payment to make versus saving that money.


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## sharplady (May 20, 2011)

Student loans are like any other loans make sure that you do your home work and know what you are getting into. I have some. I had to have them to finish school. I had a plan to not use them but my first semester of nursing school hubby lost his job. Now I was working part time so don't say well you should have gotten a job. I used that money to keep things going until I graduated a year later and got a better paying job. 

Now there is more than one kind of student loan. The ones that the government backs have a smaller interest rate and interest is deferred until you graduate. Then there is the private lender ones higher interest and no grace period on the interest. They are set up to where as long as you are in school at least half time your payments can be deferred. Up until six months after you graduate. Then they take to amount that you owe and figure the payback over a ten year period. 

You do have to option of paying extra and paying off early. There are also some strings like you cannot use that money to buy a vehicle but you can repair one you already own. You also do not have to take the full amount that they approve you for. You can decline it. All in all it can be a necessary evil to take out loans because sometimes there just is no other way. Do not let other people berate you if this is what you need to do. Only you can make that decision. 

Also I do not know about there but here tuition is rising almost daily even at the junior colleges which are supposed to be cheaper! So if you wait until you have the cash, depending on the tuition rates around there, it may actually cost more in the long run than paying one semesters worth of interest. I do not know about there but here summer classes are quite a bit cheaper along with being faster. Something to keep in mind when you are planning your year out!

Now is that as clear as mud? Hope that I was able to help some!


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## Molly Mckee (Jul 8, 2006)

Be very careful of student loans and keep in mind that the schools generally get a kick back from the loan company. I would be sure the school is legitimate-many trade schools are not. I have seen someone graduate with a "degree in security"- ie night watchman and be $29,000.00 in debt. You cannot bankrupt student loans either. Be sure whatever you decide is what you want, and that it will be worthwhile, and jobs are available!


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## GoldenCityMuse (Apr 15, 2009)

Remember, student loans can't be discharged in bankruptcy.

Be VERY careful.


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## Hollowdweller (Jul 13, 2011)

I could see using student loans to pay for school. But when you also use them for living expenses you are walking in dangerous territory.

While I value education and think student loans are good (and have had them and paid them off) one thing to think about is the housing crisis.

In the housing crisis people were persuaded to buy houses that cost more than they could strictly afford and then when they couldn't afford them the prices had dropped and the house was "underwater" not worth what paid for. When they took them out they didn't worry because they thought the house value would allow them to make a profit.

Think of that degree like a house. If you take X amount of money in loans to buy that degree, when you get out will that training or degree guarantee you a job where you can pay off that loan or will your degree be "underwater" (ie not enough jobs in the field or the pay so low that it will be rough paying off the loan??


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## Kevingr (Mar 10, 2006)

Get the book Debt Free U and read it. I know many kids paying off student loans and not getting married or buying houses or cars because of their student loan debt. Some of these kids will be paying off these loans well into their 50's because they didn't get "that job" that they thought they'd get after school.


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## wildcat6 (Apr 5, 2011)

Student loans have a tendancy to hang around so long you feel like they are part of the family. If there is any way you can go to school without incurring the debt I would highly suggest it.


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## nans31 (Jul 8, 2002)

Colleges have financial aid counseling that will give you all the information you need. They aren't there just to convice you to go into debt, but can give you good overview of the process and all involved.

That said.. I have a different opinion/history with loans than the other posters. I'll try to keep it short. 

In my miserable marriage this is how things worked-- I had to pay for my own car loan, things for the house, credit card (if I had one-- usually not), and daycare costs etc... for 3 kids if I wanted to work.. which of course I needed to if I wanted to drive a car, get new shoes for the kids etc. After a few years I really wanted to get an education beyond high school. I didn't qualify for any other aid because of his income even tho he wouldn't contribute anything. I had to take a student loan to cover tuition, books and daycare costs. I worked part time to cover my other debts. 

I took the full amount I was able to for one year. It took me a few years to pay it off but I did, and took another loan.. and paid if off later. 

I could have never taken any classes without the student loans, and am very thankful they were there for me.


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## legacy (Oct 16, 2005)

I was just having a conversation yesterday in which I said I thought it was too easy for kids to get college loans. The money is just too easy to come by and easy money tends to get spent easier than the hard-earned kind.

My only advice: Make sure you are really, really serious about pursuing a career or a passion before taking a loan.

I liked the above analogy about the housing market and the job market. Just like the housing market, easy money lured people into buying things they later wished they hadn't.

I know kids racking up college debt because they really don't know what else to do except go to college _for something._ 

And has been pointed out, these loans are like having an IRS lein on you -- you can't get away from it.


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## Lizza (Nov 30, 2005)

Kevingr said:


> Get the book Debt Free U and read it.


I was going to recommend the same book.


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## pamda (Oct 14, 2004)

My advice is, be careful, very careful. Some of the schools out there are bad. The ones that advertise on TV are the worst. The jos service office here is even telling people not to waste the time and money. wish I had been told this before wasting 9000.00 in loans and a year of my life.


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## farmerj (Aug 20, 2011)

I'd say, sit down and look at what you THINK you will make after you are done with school.

Then sit down and look at what your payment will be for a bunch of student loans. You get one each semester.

Then look at your budget and see if you can put it into it and make things work still.

You are likely going to look at a couple of $150 per month (300-400 total) payments for a two year program.

I have two student loans I am starting to pay back now. One is $65 and the other is $85 per month.

They are not making life any easier on me at all.


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## allisonhome (Dec 1, 2011)

Student loans? 

I suggest you do some online work. I'm a student and I'm working online. I'm paying for my bills and everything. Online jobs are great. Check on some sites like Elance.


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## farmerj (Aug 20, 2011)

allisonhome said:


> Check on some sites like Elance.


This is a new world for me.

can you provide more information on it? My wife has been looking for work since she graduated in May and has had no luck locally.

I'd consider something like this to fit in to my schedule if it works out.

What type of jobs / work is available there? etc.


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