Anonymous
Anonymous asked in Education & ReferenceFinancial Aid · 2 months ago

Should I do student loans? Pro vs cons?

I'm starting my second semester and I paid for the first without loans. I really don't have a lot of expenses as I have been living rent free with my dad and working for the past two years(since high school). I could afford to do this for the next semester, but I am wondering if I should apply for student loans. Is there a financial benefit of doing it that way? Does it decrease the cost somehow? Do they charge interest?

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  • MS
    Lv 7
    2 months ago
    Favourite answer

    Avoid loans if at all possible - you should aim to graduate with as little debt as possible and ideally with none.  Loans do not decrease the cost of your schooling.  The loans do accumulate interest; some loans do not start to accumulate until after you've finished school (only during the repayment period), while others accumulate interest all along.  If you can afford to pay for your school without loans, then that's what you should do.

  • GA41
    Lv 7
    2 months ago

    You should stay out of school loan debt if at all possible.  It is difficult enough to start out in life after school without the burden of debt.

  • Anonymous
    2 months ago

    There is interest. Payments deferred until after you graduate. Interest at a reasonable rate. Hard to know what's brewing to pass in congress in 2021 about college loans. Pays to get a rate quote aim for government guaranteed if still around.  

    I normally don't advocate debt, but you should start aiming for a credit rating if 18 years old yet. 

    If your dad has good credit and pays his bills and has a credit card, adding you as an authorized user starts adding to your credit score, even if never using the card or even having one.

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