5 Things to Know Before Taking Out a Student Loan

Josh Mitchell:

Wednesday's Wall Street Journal reports that the federal lending program designed to make college education available to everyone is creating a pile of debt so large it is fanning worries that it has become too easy to borrow too much.

Looking to take out a student loan? Here are five things to know.

1. Research what aid is available to you--including scholarships, state and federal grants, and then federal loans. Meet with your school's financial-aid counselor to learn these options. Visit the government's website. The private website www.Finaid.org also has good resources.

2. Know the terms of your loans. What is the interest rate, what is the repayment period, and when precisely will payments begin? More importantly, find out what your expected monthly payment will be upon graduation. The financial aid counselor should be able to provide this. Also, learn about the federal government's income-based repayment program.

Posted by Jim Zellmer at January 2, 2013 2:27 AM
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