Student Loans 101: An Introduction
Summary: How much do you know about borrowing money for college? Watch this 90 second video for a quick overview of student loans.
Video: 1 minute, 30 seconds
Who this is for: Juniors, Seniors and Parents
For most students, taking out a loan to help pay for college is the first time they've had to borrow a large sum of money. If that's your situation, it's good for you to have at least a basic understanding of how loans work, and what you need to think about when looking at them. This short video gives you a quick overview of what to keep in mind when considering a student loan.
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Nearly every other student who goes to college takes out student loans.
Ask most students why they’re going to college, and though they may have all kinds of good reasons, most will probably say, "It’s to get a good job." In short, they’re making an investment in their future. But that investment can cost a lot of money – which is why roughly every other student who goes to college takes out student loans. Getting that needed extra money might sound good at first. But it gets complicated.Student loans charge interest, which means you pay back more than you borrowed.
When you get a student loan, you also get charged interest – which means you’ll have to pay back more than what you borrowed. Plus, the more you borrow, and the longer it takes you to pay it back, the more your loans will cost you. Now some people might think – “Why worry? That won’t happen until way into the future.”The more you owe in student loans, the less you’ll have left for other things.
Think about it. Your future is why you’re going to college. So, even if your education helps you land a good-paying job, you still have to ask yourself, “How much of your income will go towards paying off your student loan?” And how much could instead be going toward helping you buy a car, live in a nicer place, or do more of what you want to do? It’s really simple math. The more you owe in student loans, the less you’ll have left for other things. But there are ways to manage all this. And what you’re going to learn here are ways to work out a balance. It’s not easy. But it’s not all that difficult, either. And if you can start learning some good ways to invest in your dream right now, maybe you’ll be able to live more of that dream, later on.Want to learn more? Just tap below to watch our "How Do Student Loans Work" video.
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How much do you know about borrowing money for college? Watch this 90 second video for a quick overview of student loans.