3 questions to ask yourself before taking out another student loan
Updated on June 3, 2020
Attending college is expensive for any student because of the rising tuition fees. Furthermore, other expenses such as your housing, textbooks, materials, and food, can quickly add up, making college quite pricey.
Therefore, taking out one federal student loan isn’t always enough for most students. It’s common to find people with two or more loans in university, and over the years, they add more to fund their education.
While taking out a second or third student loan can help you through college, it often strains your budget in the future. For instance, you’ll find a huge chunk of your salary going towards student loan debt, leaving you with little to pay rent and utilities.
So, before taking out another student loan, here are three questions you need to ask yourself.
1. Do I really need another student loan?
At times, you may want to take out another federal student loan only because your friends or classmates are doing it. Alternatively, you may want additional cash to splurge on unnecessary items such as a vehicle.
Unfortunately, this costs you down the road as you will be in debt longer. Instead, step back and assess whether you need another loan. For instance, do you need a car to survive college, or can you use public transportation? And, is there a way you can save money to free up your budget?
2. Are there any other options?
Taking out a student loan should always be your last choice after exhausting all other options. This includes scholarships and grants provided by your school or other charity organizations.
You can also try getting a part-time or full-time job, depending on your schedule, to earn extra money to cover your college expenses.
3. What type of student loan should I get?
Once you’ve exhausted all options, you can settle on taking out a student loan. As far as student loan repayment options go, federal student loans are the best. They also have low-interest rates when compared to private student loans.
Need a federal student loan?
Contact StudentLoanify today to get help with your student loans.