Education loan Interest

STUDENT LOANS Borrow Smart! The Effects of Smart Vs. Unwise Borrowing Habits Borrowing money is almost always easier than paying it back! By taking a look at the financial decisions of two college students, you can see how simple life choices can make a big impact on your total student loan debt and your future repayment bills. Meet Will & Ally William Wise & Ally Oops are 2 independent college students, attending the same school, in the same field of study, at the same academic level. Although they were eligible for the same amount of aid & both attended the same 4 year program, they made very different choices throughout their educational experience. VS. William Wise Ally Oops 1. Will searched for all possible ways to pay for school before accepting student loans. SEARCH FOR AID & SCHOLARSHIP Ally assumed she wouldn't be eligible for scholarships. grants, or aid. Will worked part-time while in school to help cover living Allt didn't consider working at all, while in school, and instead rang up high credit card bills on things she didn't really need. expenses and entertainment costs. Will lived in an apartment Ally lived in a 2 bedroom townhouse by herself. with roommates in order to limit rent costs. Will caught the bus to school and rode his bike to work. Ally leased a car and drove everywhere she went. STOP Will learned to cook, impressing his friends and saving money on food costs by buying groceries. Ally took herself out to lunch everyday and often ordered take out night. During school, Will mailed in a payment every month for all of the interest that was accruing on his unsubsidized loans, saving hom money down the road. MI During school, Ally didn't pay any of the interest that was accuring on her unsubsidized loans, resulting in higher repayments down the road. Because of his 'smart borrowing' choices, Will was able to borrow only the amount of loans that were absolutely Because of her 'unwise borrowing' choices, Ally borrowed the full amount of necessary to pay for his education! loans that were offered, regardless of the amount she actually needed. William Wise Ally Oops Total Amount of Student Loans Borrowed (Over 4 Years): $16,000 $42,000 Monthly Student Loan Payments: $184/mth* $483/mth* As you can see, the little choices you make can add up in a BIG way when it's time to repay your student loans... Borrow smart! Conclusion Source : http://www.avanse.com/calculators/emi-calculator/