Tips And Tricks For Dealing With Student Loans
As the cost of college increases, the need for student loans becomes more common. But all too often, students are not borrowing wisely and are left with a mountain of debt to pay off. So it pays to do your research, find out the different options and choose wisely.
Think carefully when choosing your repayment terms. Most public loans (lån) might automatically assume a decade of repayments, but you might have an option of going longer. Refinancing (refinansiering) over longer periods of time can mean lower monthly payments but a larger total spent over time due to interest. Weigh your monthly cash flow against your long-term financial picture.
Do not default on a student loan. Defaulting on government loans can result in consequences like garnished wages and tax refunds withheld. Defaulting on consumer loans (forbrukslån) can be a disaster for any cosigners you had. Of course, defaulting on any loan risks serious damage to your credit report, which costs you even more later.
As you can see, student loans are loans without collateral (lån uten sikkerhet) that can be the answer to your prayers or they can end up being a never ending nightmare. So it makes a lot of sense to really understand the terms that you are signing up for.