Tips for Steering Clear of Student Loans

Although thousands upon thousands of people take out student loan debt, this is something that requires careful consideration. Especially if you have been asked to co-sign on a loan such as this, you first need to know all pros and cons.

Even without securing a student loan, you or your child can earn a college degree. For example, you may want to compare tuition for several different institutions, looking for the most affordable. You can also work part-time or maintain a full-time job while attending night school. The bottom line is that before locking into a student loan, determine if there are other options.

The greatest concern with student loans is that it takes 10 years or more to get out of debt, with the average student owing $30,000 at graduation. Even hiring a respected attorney in Herkimer does not guarantee the debt can be discharged in bankruptcy. Therefore, if you or your child look forward to college but a student loan is your only viable means of attending, expect to spend many years paying the loan off.

As for co-signing on a student loan, remember that if your child reaches a point of not being to pay, you automatically assume the debt. For that reason, before co-signing, you need to understand that there is a risk of you becoming the person responsible for payment. In exchange for paying off another person’s debt, you enjoy no educational benefits for yourself. Co-signing on a student loan could actually stop any plans that you have for retirement, not to mention the potential for causing family discord.

Something else to think about is that the student loan does not go away just because you or your child never graduates. Obviously, you do not want to spend years paying off student loans if you or your child drops out of school or never finds an excellent job with great pay as anticipated. Interestingly, of the people who default on student loans, college dropouts have the highest rate.

Whether for you or your child, prior to taking out student loans, take the time to learn the exact amount that has to be repaid and how much time you have for repayment. When making the decision about student loans, consider both short- and long-term financial obligations, as well as goals. That way, you can decide if the additional financial burden is even feasible.

An excellent option is to sit down with a qualified Herkimer attorney or financial advisor to analyze the situation before signing or co-signing on a student loan. If you are already burdened by student loans and recognize that bankruptcy is your only possible recourse, you definitely need to speak to a bankruptcy lawyer in Herkimer. With that, you will have more knowledge about your options as well as direction for taking the best course of action.

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