Student loans are an important source of funding for college students. Although there is legitimate concern about the total amount of educational borrowing in our country, a college education is still an excellent investment and for many students the funding provided by federal loans is the difference between earning a degree and not earning a degree.
That said, it is very important that you actually earn a degree if you borrow. The loan default rates are very low for students who graduate and very high for borrowers who never finish college.
Of course, less student loan debt is better than more student loan debt. All students should make a reasonable effort to minimize college expenses, maximize college discounts and borrow as little as possible. But this does not mean that you have to choose the least expensive option and avoid loans all together. If you stay within the federal student loan programs, avoid borrowing for frivolous expenses and understand all your repayment options, a reasonable amount of student loan debt will not ruin your life.
Learn about all Federal Student Loan programs.
Review typical monthly loan payment amounts.
Borrowers may choose from a number of different repayment plans.
Private Student Loans
Students should always borrow from the federal student loan programs first.