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How long does it take to pay off college debt after you take out loans?
I am not sure about what to do after college. Should I transfer after going to city college for two years?
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4 answers
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Karin’s Answer
Hi Jolin,
It depends.......how much debt are we talking about, $20000 or $200000? Where is the loan from? What is the interest rate? How is the interest applied? Is it a fixed rate or a flexible raye? How much can you pay back every month?
Preferably you would not take out any loans, or as little as possible. Talk to the financial office, apply to FAFSA. Apply to every scholarship you can think of, and there are many, check your city, your state, professional societies, large companies that would employ people like you (i.e. tech companies if you are in tech, chemical, biotech or medical companies if you are in chemistry, biology, medicine, etc), a parent's or guardian's employer. There are scholarships for certain demographic groups, e.g. women, minorities, first generation etc. Check out ScholarMatch. They are active in the bay area. Apply for work-study on campus. Think about a part-time job when you study and summer jobs. If you develop any skills that you can freelance (e.g. website building), do that.
If you have to take on loans, make sure you compare the conditions carefully (federal, state, banks). Once you have a job, pay as much as you can, i.e. reduce the principal, don't just pay the minimum because that mostly goes to interest and your principal is largely unaffected. Seek financial advice from someone who knows this stuff.
I hope this helps! Good luck!
KP
It depends.......how much debt are we talking about, $20000 or $200000? Where is the loan from? What is the interest rate? How is the interest applied? Is it a fixed rate or a flexible raye? How much can you pay back every month?
Preferably you would not take out any loans, or as little as possible. Talk to the financial office, apply to FAFSA. Apply to every scholarship you can think of, and there are many, check your city, your state, professional societies, large companies that would employ people like you (i.e. tech companies if you are in tech, chemical, biotech or medical companies if you are in chemistry, biology, medicine, etc), a parent's or guardian's employer. There are scholarships for certain demographic groups, e.g. women, minorities, first generation etc. Check out ScholarMatch. They are active in the bay area. Apply for work-study on campus. Think about a part-time job when you study and summer jobs. If you develop any skills that you can freelance (e.g. website building), do that.
If you have to take on loans, make sure you compare the conditions carefully (federal, state, banks). Once you have a job, pay as much as you can, i.e. reduce the principal, don't just pay the minimum because that mostly goes to interest and your principal is largely unaffected. Seek financial advice from someone who knows this stuff.
I hope this helps! Good luck!
KP
Updated
Jerome’s Answer
Agree with others. It really will depend on the amount you take out and the job you get.
I was able to pay mine back quick as I had a sales job that paid decent bonuses. Every time I got a bonus, we decided to make a lump sum payment (we found the interest we'd make on the money was FAR less than the interest we paid on the loans). By paying off the loans over saving money, we actually came out ahead long-term.
Be mindful in what you take out in loans. You can likely find a calculator online that will show you an estimate monthly repayment amount. By the time I was done with my masters degree, I was expected to pay nearly $500 a month. That is a lot of money with an entry level job.
I was able to pay mine back quick as I had a sales job that paid decent bonuses. Every time I got a bonus, we decided to make a lump sum payment (we found the interest we'd make on the money was FAR less than the interest we paid on the loans). By paying off the loans over saving money, we actually came out ahead long-term.
Be mindful in what you take out in loans. You can likely find a calculator online that will show you an estimate monthly repayment amount. By the time I was done with my masters degree, I was expected to pay nearly $500 a month. That is a lot of money with an entry level job.
Updated
Rian’s Answer
Hi Jolin,
The answer to your question depends on what sort of job you get after graduating college. Typically student loans require a minimum payment, however it is in your best interest to pay them off as soon as possible due to the interest that will continue to accrue on them. Without knowing what you plan to do after college makes it hard to tell you how long it will take to payoff.
The answer to your question depends on what sort of job you get after graduating college. Typically student loans require a minimum payment, however it is in your best interest to pay them off as soon as possible due to the interest that will continue to accrue on them. Without knowing what you plan to do after college makes it hard to tell you how long it will take to payoff.
Updated
Jessica’s Answer
Just like Karin pointed out, the amount you need to borrow, the kind of loan you choose, and your income after graduation are all components that could impact how long it will take you to pay off your loans. However, I'd like to shed some light on the second part of your question about starting at a city college before moving on to a university. This approach can indeed allow you to save money. By attending a regionally accredited community college to earn your associate degree before transferring to a regionally accredited university for your bachelor's degree, you could save a considerable amount of money.
This strategy allows you to complete your core classes at a less expensive institution, and earn a two-year degree before moving on to a pricier university for the final two years of your bachelor's degree. It's important to have a conversation with the admissions offices of both the community college and university you're considering. They can offer valuable advice and suggestions, including recommended institutions (some even have pre-established transition programs) and guidance on which majors and courses will transfer smoothly between the two schools. This ensures that you'll graduate with the degree you've always wanted.
Don't forget that a wealth of financial aid is available, so be sure to file your FAFSA early, ideally a year before your first semester. Remember, the money you invest in your education is an investment in your future. It's all about nurturing your potential and paving the way for a successful career. So, embrace the journey and make the most of every opportunity that comes your way.
This strategy allows you to complete your core classes at a less expensive institution, and earn a two-year degree before moving on to a pricier university for the final two years of your bachelor's degree. It's important to have a conversation with the admissions offices of both the community college and university you're considering. They can offer valuable advice and suggestions, including recommended institutions (some even have pre-established transition programs) and guidance on which majors and courses will transfer smoothly between the two schools. This ensures that you'll graduate with the degree you've always wanted.
Don't forget that a wealth of financial aid is available, so be sure to file your FAFSA early, ideally a year before your first semester. Remember, the money you invest in your education is an investment in your future. It's all about nurturing your potential and paving the way for a successful career. So, embrace the journey and make the most of every opportunity that comes your way.