1. Student Loans
IS IT WORTH IT?

2. PROS of Loans
INVESTMENT

3. PROS of Loans
A college degree is important for advancing one’s earnings potential.
Looking at cumulative earnings over the entire career, the typical bachelor’s degree graduate worker earns $ million, which is twice what the typical high school graduate earns, and $335,000 more than what the typical associate degree graduate earns.

4. PROS… Federal loans are very: -FLEXIBLE - LOW -FIXED
-Without Credit history/co-signer
-Subsidized

5. Build Credit 300-629: Bad credit 630-689: Average/fair credit
: Good credit
720 and up: Excellent credit
If you have bad credit…no loan. Or interest rate goes higher because they take a higher risk on you

6. CONS of LOANS Bad credit Keep accumulating until paying it
If things don’t work out….
Getting in debt at early age shifts career choices..
50k or 70k

7. STATISTICS
$37, 172
Average student loan debt Class of 2016 graduate has $37,172 up six percent previous year.

8. MORE STATS….
In 2012, 71% of students graduating from four-year colleges had student loan debt:
Represents 1.3 million students graduating with debt.
66% of graduates from public colleges had loans (average debt of $25,550)
75% of graduates from private nonprofit colleges had loans (average debt of $32,300)
88% of graduates from for-profit colleges had loans (average debt of $39,950)

9. If you decide to take loans….
Research loans
Direct Subsidized Loans 3.76%
Direct Unsubsidized Loans Undergraduate 3.76%
Direct PLUS Loans Parents and Graduate or Professional Students 6.31%
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10. How much to take out?
For a student loan burden to be manageable, the total amount you owe should be less than your starting salary after graduation. "If your total student loan debt is less than your annual income, you'll be able to repay that debt in about 10 years.”
Look at the averages

11. LOAN TIPS
KNOW YOUR LOANS Keep track of the lender, balance, and repayment status for each of your student loans. These details determine your options for loan repayment and forgiveness. If you're not sure, ask your lender or visit
DON’T PANIC. If you're having trouble making payments because of unemployment, health problems, or other unexpected financial challenges, there are legitimate ways to temporarily postpone your federal loan payments, such as deferments and forbearance. But beware: interest accrues on all types of loans during forbearances, and on some types of loans during deferment, increasing your total debt, so ask your lender about making interest-only payments if you can afford it.

12. TIPS..
Stay out of Trouble! Ignoring your student loans can lead to delinquency and default. For federal loans, default kicks in after nine months of non-payment. When you default, your total loan balance becomes due, your credit score is ruined, the total amount you owe increases dramatically, and the government can garnish your wages and seize your tax refunds if you default on a federal loan. For private loans, default can happen much more quickly and can put anyone who co-signed for your loan at risk as well.
Prepay If You Can: If you can afford to pay more than your required monthly payment - every time or now and then - you can lower the amount of interest you have to pay over the life of the loan

13. TIPS...
Pay Off the Most Expensive Loans First: If you're considering paying off one or more of your loans ahead of schedule, start with the one that has the highest interest rate.
To Consolidate or Not to Consolidate: A consolidation loan combines multiple loans into one for a single monthly payment and one fixed interest rate. If this is appealing, here are some pros and cons to consider.

14. Tips….
Loan Forgiveness: There are various programs that will forgive all or some of your federal student loans if you work in certain fields or for certain types of employers. Public Service Loan Forgiveness is a federal program that forgives any student debt remaining after 10 years of qualifying payments for people in government, nonprofit, and other public service jobs. Find out more at IBRinfo.org. There are other federal loan forgiveness options available for teachers, nurses, AmeriCorps and PeaceCorps volunteers, and other professions

15. Calculating Interest
Loan Calculator- calculating interest and monthly payments
your-student-loan-payment.cfm

16. Promissory Note
Loan Counseling

17. Other ways to finance...
Apply and look for scholarships daily. Under my website sofcollege.webs.com - webresources -scholarships
Work, part-time, RA
Pay the interest while you are in school vs. after grace period. Interest gets capitalized and adds principal to the loan. Then you pay interest on a bigger loan
Future salary? Occupation? Grad school? Can you manage it?
Cheaper alternatives
File FAFSA, CSS Profile, TAP every year