Before you accept a student loan, carefully review it. Make sure you know what you will have to repay and when. Keep in mind that private loans usually have higher interest rates than government loans. Choose the loan that has the lowest interest rate and, if possible, does not require you to start paying it off until you graduate.
Also, understand that a student loan must be repaid. If you don’t repay it, it will hurt your credit record. A poor credit record will make it difficult—even impossible—to get a loan in the future to buy a car or a house.
In a few situations, the federal government may “forgive” your loan. This means you will not have to repay part or all of it. College graduates who go into law enforcement or agree to teach in a federally designated low-income area for a certain length of time may have part of their student loan forgiven. Ask your financial aid officer for details.
