Educational FDIC Consumer News

Navigating Student Loans: Your Roadmap to Financial Success

March 5, 2024

Entering college or graduate school comes with financial decisions, especially regarding student loans. Understanding your options, borrowing wisely, and having a clear repayment plan are essential. Learn how to make informed choices and avoid common pitfalls with these helpful strategies.

– Research Grants and Scholarships: Start with the FAFSA to explore federal aid opportunities. Determine your borrowing needs and repayment affordability by assessing your anticipated costs and future earnings.

– Federal vs. Private Loans: Consider federal loans first for their fixed interest rates and flexible repayment options. Private loans should be a last resort due to potentially higher rates and limited benefits.

– During School: Opt for direct deposit for student aid and monitor your borrowing to minimize debt. Explore options to make interest payments early and reduce the principal amount.

– Repayment: Choose the right repayment plan for your situation, considering federal loan forgiveness programs and private loan terms. Make timely payments to build good credit and explore refinancing opportunities if needed.

– Beware of Scams: Protect yourself from debt relief scams by researching repayment options and avoiding sharing personal information. Stay informed and empowered to create a solid financial future.

For more detailed guidance, read the full article from the FDIC: https://www.fdic.gov/resources/consumers/consumer-news/2024-02.html