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If I use loans to pay for my college tuition, how long do I have to pay back the loans?
Thinking about having to pay for college is scary, especially if using loans. I have heard many stories of people using loans to pay for college, but when they graduate, they are still severe college debt. How much time do people have to pay it back?
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3 answers
Updated
Michelle’s Answer
Hello, Kenneth !
The average cost for UCSC is about $14,070.00 per year which isn't that high compared to other colleges in the U.S. All of the particulars that you've asked about loans would be explained to you in your senior year at a group meeting from the financial aid department in your senior year. All of the current guidelines will be explained to you then as well as you will receive written information to refer to. If your college doesn't do that, you can expect receiving the written information and you can meet with a financial aid officer at your campus to ask any unanswered questions. You'll know exactly what to do.
The University of California at Santa Cruz, from what I see, is not a No Loan college (but double check with your financial aid office because things are always changing). No Loan colleges are schools that have an agreement with federal financial aid to help students without the students having to take out loans. However, you can opt for Loan Refusal. What that means is that when you apply for financial aid, do not check the option for loans. Accept the Work Study and Grants, but not the loan. Naturally, the loan portion would be a hefty portion of the total amount you are awarded, but you'd make up the difference by applying for many scholarships and private grants that you don't have to pay back. At the end, you will owe nothing. But you'll have to work practically full time applying for grants and scholarships to assure the best results. It just may be worth it so you do not graduate in debt.
In your senior year in high school, apply for as many scholarships as possible. Every and any that you qualify for. You will be preparing to take care of your first year with any of the scholarships you receive. Than while you are enrolled in college, inquire about scholarships that the college offers to current students. Go on the internet to all the huge tech corporations and see what grants or scholarships they give to students since you would be a computer science major. If your parents work at a large corporation or are in a labor Union, find out if it offers a scholarship to their children. Many scholarships are categorized by major, gender, financial circumstances, high grades, medium grades, ethnicity, and many other qualifying elements, so explore them all. You will need to make up the difference by not taking loans. Also visit your local Chamber of Commerce to inquire about which local companies offer student scholarships. Try your local banks, too - not for a loan, but to see if they offer scholarships. Check out The Silicon Valley Community Foundation Scholarships, too. Their website is at: https://www.siliconvalleycf.org/scholarships
I have left some scholarships links below for you to get you started. As I've mentioned, you will need to apply for any and all that you qualify for because applying doesn't mean you'll receive them, so you must make every attempt to increase your chances of being awarded some by applying to many. In the long run, when you graduate, you will be glad that you didn't have to take out any loans.
I hope that this has been helpful and I wish you all the best !
COMPUTER SCIENCE SCHOLARSHIPS https://www.smartscholar.com/scholarships/computer-science-major-scholarships/
CALIFORNIA SCHOLARSHIPS https://www.scholarships.com/financial-aid/college-scholarships/scholarship-directory/residence-state/california
SCHOLARSHIP AMERICA SCHOLARSHIPS https://scholarshipamerica.org/
SCHOLARSHIPS https://accessscholarships.com/blog/50-scholarships-for-college-students/
UNIQUE, FUN AND SILLY COLLEGE SCHOLARSHIPS https://www.fastweb.com/college-scholarships/articles/unique-silly-fun-scholarships
The average cost for UCSC is about $14,070.00 per year which isn't that high compared to other colleges in the U.S. All of the particulars that you've asked about loans would be explained to you in your senior year at a group meeting from the financial aid department in your senior year. All of the current guidelines will be explained to you then as well as you will receive written information to refer to. If your college doesn't do that, you can expect receiving the written information and you can meet with a financial aid officer at your campus to ask any unanswered questions. You'll know exactly what to do.
The University of California at Santa Cruz, from what I see, is not a No Loan college (but double check with your financial aid office because things are always changing). No Loan colleges are schools that have an agreement with federal financial aid to help students without the students having to take out loans. However, you can opt for Loan Refusal. What that means is that when you apply for financial aid, do not check the option for loans. Accept the Work Study and Grants, but not the loan. Naturally, the loan portion would be a hefty portion of the total amount you are awarded, but you'd make up the difference by applying for many scholarships and private grants that you don't have to pay back. At the end, you will owe nothing. But you'll have to work practically full time applying for grants and scholarships to assure the best results. It just may be worth it so you do not graduate in debt.
In your senior year in high school, apply for as many scholarships as possible. Every and any that you qualify for. You will be preparing to take care of your first year with any of the scholarships you receive. Than while you are enrolled in college, inquire about scholarships that the college offers to current students. Go on the internet to all the huge tech corporations and see what grants or scholarships they give to students since you would be a computer science major. If your parents work at a large corporation or are in a labor Union, find out if it offers a scholarship to their children. Many scholarships are categorized by major, gender, financial circumstances, high grades, medium grades, ethnicity, and many other qualifying elements, so explore them all. You will need to make up the difference by not taking loans. Also visit your local Chamber of Commerce to inquire about which local companies offer student scholarships. Try your local banks, too - not for a loan, but to see if they offer scholarships. Check out The Silicon Valley Community Foundation Scholarships, too. Their website is at: https://www.siliconvalleycf.org/scholarships
I have left some scholarships links below for you to get you started. As I've mentioned, you will need to apply for any and all that you qualify for because applying doesn't mean you'll receive them, so you must make every attempt to increase your chances of being awarded some by applying to many. In the long run, when you graduate, you will be glad that you didn't have to take out any loans.
I hope that this has been helpful and I wish you all the best !
Michelle recommends the following next steps:
Updated
Patrick’s Answer
Repaying student loans for college tuition depends on several factors like the loan type, chosen repayment plan, and any used deferment or forbearance options. Federal student loans usually offer flexible repayment options to suit different financial situations, while private loans might have varying terms and schedules.
For federal student loans, the usual repayment period is around 10 years. However, borrowers can choose to extend this period using different repayment plans. For instance, income-driven repayment plans adjust monthly payments based on the borrower's income and family size, extending the repayment period to 20 or 25 years. While this can reduce monthly payments, it might lead to more interest paid over the loan's lifetime.
Federal student loans also offer deferment or forbearance options in certain situations like economic hardship, unemployment, or returning to school. These options allow borrowers to temporarily pause or reduce their loan payments without defaulting, offering temporary financial relief.
Private student loans may have different repayment terms and options, depending on the lender. These loans usually offer fixed or variable interest rates, with repayment periods from 5 to 20 years or more. Before taking on debt, borrowers should carefully review the terms and conditions of private loans, including interest rates, fees, and repayment options.
Borrowers should understand their student loans' terms, including the repayment schedule, interest rates, and any available repayment options or assistance programs. Creating a repayment plan and budgeting for loan payments can help borrowers manage their debt effectively and avoid default.
For those worried about student loan debt, exploring options like scholarships, grants, work-study programs, and part-time jobs can help lessen the reliance on loans and decrease the overall cost of college. Also, considering cost-effective educational options like community college, online courses, or attending in-state public universities can help reduce tuition costs and lessen the need for loans.
Repaying student loans might seem intimidating, but understanding the available repayment options and planning can help borrowers effectively navigate the process and lessen the impact of college debt on their financial future. Getting advice from financial aid counselors, loan servicers, and reliable information sources can offer valuable insights and support in responsibly managing student loan debt.
For federal student loans, the usual repayment period is around 10 years. However, borrowers can choose to extend this period using different repayment plans. For instance, income-driven repayment plans adjust monthly payments based on the borrower's income and family size, extending the repayment period to 20 or 25 years. While this can reduce monthly payments, it might lead to more interest paid over the loan's lifetime.
Federal student loans also offer deferment or forbearance options in certain situations like economic hardship, unemployment, or returning to school. These options allow borrowers to temporarily pause or reduce their loan payments without defaulting, offering temporary financial relief.
Private student loans may have different repayment terms and options, depending on the lender. These loans usually offer fixed or variable interest rates, with repayment periods from 5 to 20 years or more. Before taking on debt, borrowers should carefully review the terms and conditions of private loans, including interest rates, fees, and repayment options.
Borrowers should understand their student loans' terms, including the repayment schedule, interest rates, and any available repayment options or assistance programs. Creating a repayment plan and budgeting for loan payments can help borrowers manage their debt effectively and avoid default.
For those worried about student loan debt, exploring options like scholarships, grants, work-study programs, and part-time jobs can help lessen the reliance on loans and decrease the overall cost of college. Also, considering cost-effective educational options like community college, online courses, or attending in-state public universities can help reduce tuition costs and lessen the need for loans.
Repaying student loans might seem intimidating, but understanding the available repayment options and planning can help borrowers effectively navigate the process and lessen the impact of college debt on their financial future. Getting advice from financial aid counselors, loan servicers, and reliable information sources can offer valuable insights and support in responsibly managing student loan debt.
Thank you so much, Patrick!
Kenneth
Updated
Karin’s Answer
Hi Kenneth,
Before you take out loans, talk to the financial aid office of your university, find out what kind of package they can make for you, if the university has extra scholarships available, and sign up for work-study. Look for any other source of scholarships and apply.
How long you'll re-pay a loan depends on how much you owe, your interest rate, the fees that are charged, if your loan has simple or compound interest and how much you can pay back every month.
There are federal and private loans. I am leaving some links for you below. Interest rates can vary widely, so make sure you find the best deal for you. Generally, you should max out federal loans before you go private. The interest rate on fed loans is 5.5% right now, for graduate studies it's higher.
You start paying back 6 to 9 months after you graduate, i.e. when you presumably have a job. During COVID, there was a break for payments, but that ended last year. If you become unemployed, you can defer payments for a while.
Your monthly payments go first towards interest, then towards the principal. If you can pay more than the minimum amount, you pay off the principal faster, therefore you pay less interest overall. If you don't pay the interest in full it might accrue and increase the amount you owe. There have been some recent changes (SAVE plan) to re-payment with regards to this, so check that one out as well.
I hope this helps! Make sure you understand exactly what you sign when getting a loan!
KP
https://www.nerdwallet.com/article/loans/student-loans/student-loan-interest-rates
https://www.usatoday.com/money/blueprint/student-loans/student-loan-interest-rates/
https://studentaid.gov/understand-aid/types/loans/interest-rates
https://studentaid.gov/announcements-events/save-plan
https://studentaid.gov/h/apply-for-aid/fafsa
Before you take out loans, talk to the financial aid office of your university, find out what kind of package they can make for you, if the university has extra scholarships available, and sign up for work-study. Look for any other source of scholarships and apply.
How long you'll re-pay a loan depends on how much you owe, your interest rate, the fees that are charged, if your loan has simple or compound interest and how much you can pay back every month.
There are federal and private loans. I am leaving some links for you below. Interest rates can vary widely, so make sure you find the best deal for you. Generally, you should max out federal loans before you go private. The interest rate on fed loans is 5.5% right now, for graduate studies it's higher.
You start paying back 6 to 9 months after you graduate, i.e. when you presumably have a job. During COVID, there was a break for payments, but that ended last year. If you become unemployed, you can defer payments for a while.
Your monthly payments go first towards interest, then towards the principal. If you can pay more than the minimum amount, you pay off the principal faster, therefore you pay less interest overall. If you don't pay the interest in full it might accrue and increase the amount you owe. There have been some recent changes (SAVE plan) to re-payment with regards to this, so check that one out as well.
I hope this helps! Make sure you understand exactly what you sign when getting a loan!
KP
Karin recommends the following next steps:
Thank you, this is really helpful.
Kenneth