Preparing to enter college is an exciting period. During this time, many people research student loans to help fund their academic careers. While this popular option provides extensive value, there are a few aspects you need to consider to maintain control of your future finances. The following guide offers some valuable pointers to help you get started. 

How Much You Should Borrow

When you apply for a loan, be careful about how much you take out. In total, undergraduates can take out up to $57,500 to fund their academic careers. However, just because you can take that amount out, doesn’t mean you should. In general, you should only take out roughly 50% of your projected yearly salary once you graduate. This will ensure your monthly rates are manageable. 

What Student Loans Can Be Used For

Unlike a personal loan, where you can spend the money you receive on whatever you want, student loans can only be used for particular expenses. Most creditors allow the money you receive to be used on tuition, room and board, books, transportation, and academic fees. 

What Type of Student Loans You Should Get

Most students opt for one of two types of loans: federal or private. In most cases, the former is preferable. With federal loans, you’re more likely to get a payment plan that’s based on your income and repayment capabilities. Furthermore, federal loans, like those given through FAFSA (Free Application for Federal Student Aid), don’t require applicants to have a credit history, which can be a deterrent with private loans. 

Even with adequate preparation, it’s still possible to overextend yourself after taking out student loans. If this happens to you, turn to Padgett & Robertson, Attorneys at Law in Mobile, AL. For over 35 years, they've helped young adults in Southern Alabama regain control of their finances, whether they’re facing wage garnishment or foreclosure. Give them a call today at (251) 342-0264 or visit their website to learn more about their services and schedule a consultation. 

No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers. 

We are a debt relief agency. We help people file for bankruptcy relief under the bankruptcy code.