馃攳
Everything You Need To Know About Student Loans - YouTube
Channel: unknown
[0]
[Music]
[3]
so the time has come in our guide to
[6]
getting good with money to talk about
[8]
the thing that none of us really want to
[10]
talk about which is student loans if
[12]
student loans are a part of your life at
[15]
least take solace in the fact that you
[17]
are very far from a loan of the class of
[19]
2019 69% took out loans of some kind
[23]
with an average debt burden on
[24]
graduation totaling just shy of $30,000
[27]
for the vast majority of students
[29]
college loans are a reality they must
[31]
face and it's better to know what you're
[33]
getting into before you find yourself at
[35]
the end of the college experience for
[37]
most of the loans available to you you
[39]
will have to do something called an exit
[41]
counseling session where you will have
[43]
to read about your loan and answer
[45]
questions about it usually around things
[47]
like the terms of the repayment to make
[49]
sure that you understand what you're
[50]
getting into but many of us just don't
[53]
take those exit counseling seriously or
[55]
even if we do they're often too little
[58]
too late and no matter where you are in
[60]
the student loan process ie even if
[62]
you've already taken out student loans
[64]
it's never too late to learn more about
[67]
what that really entails and if you're
[69]
in a place where you have the option to
[70]
take out potentially less in student
[72]
loans in the future or even sometimes
[74]
avoid them altogether it's really
[77]
important to know your options so first
[79]
it's important to understand what
[80]
student loans actually are for most
[83]
college students student loans are just
[85]
one part of an overall financial package
[87]
that will often entail other categories
[90]
like grants scholarships merit-based
[92]
Awards work-study programs etc for most
[95]
of us they make up part of the pie of
[97]
how we're financing college and
[99]
hopefully for many of us not the
[101]
overwhelming majority in most cases you
[104]
will not need to start paying back your
[105]
student loans immediately but you should
[108]
very much keep in mind when you are
[110]
expected to start repaying them and keep
[112]
that date clearly in your other
[113]
financial planning as well as in many
[115]
cases your life planning for a lot of us
[118]
it will be something like six months
[119]
after graduation that repayments starts
[121]
kicking in but there are other ways to
[123]
defer the loan repayments more on that
[125]
later so then comes the question of what
[128]
kind of student loans you have there are
[130]
two main types of student loans that you
[132]
can take out private loans
[133]
federal loans private loans are any
[135]
loans given by a lender other than the
[137]
government including businesses banks
[139]
credit unions and the school you're
[141]
attending itself the terms of the loans
[143]
are set by the lender and can vary
[145]
widely between different loan providers
[147]
private loans can have variable or fixed
[149]
interest rates which means that your
[151]
interest rate can be dependent on yours
[153]
or your parents credit score or other
[155]
co-signers private loans are also
[157]
typically unsubsidized which means that
[159]
you're responsible for all the interest
[161]
that accrues on your loan including the
[162]
interest that accrues while in school
[164]
private loans are taken out with a set
[166]
repayment term usually anywhere from
[168]
five to twenty years and are typically
[170]
not eligible for student loan
[171]
forgiveness programs or government
[174]
backed repayment programs designed to
[175]
lower your monthly cost and again keep
[177]
in mind that private loans can have
[179]
interest rates that can change over the
[181]
course of your loan repayment you might
[183]
start with a very low 3% interest rate
[185]
only to find yourself paying a
[187]
double-digit 13% after a few years for
[190]
comparison federal student loan interest
[192]
rates for undergraduate students are
[193]
usually no greater than 5%
[195]
lastly additionally private loans can be
[198]
refinanced meaning you can try to get a
[200]
lower interest rate depending on your
[201]
score salary and other factors they can
[203]
be a gamble that you can win or lose
[205]
then you have the public / federal loans
[208]
as their name implies federal loans are
[210]
loans funded by the federal government
[212]
there are three types of federal student
[214]
loans for undergraduates direct
[216]
subsidized loans direct unsubsidized
[219]
loans and Direct PLUS loans for parents
[221]
subsidized means that the government
[224]
pays the interest that accrues on your
[225]
loans while you're in school or
[226]
deferment unsubsidized loans accrue
[229]
interest that you will eventually have
[230]
to repay even while in school PLUS loans
[233]
are taken out by your parents and are
[234]
repaid by your parents even though
[236]
they're taken out for you to get federal
[238]
student loans you have to fill out a
[239]
FAFSA form or a free application for
[242]
federal student aid important to
[243]
remember that all federal student loans
[245]
have a fixed interest rate currently
[247]
that fixed interest rate for
[248]
undergraduates is four point five three
[250]
percent also except for PLUS loans you
[253]
do not need to submit to a credit check
[254]
for a federal loan because the interest
[257]
rate is fixed and does not depend on
[258]
your credit score most importantly for
[260]
federal loans there are many options to
[262]
you for repayment and even postponement
[264]
in terms of financial difficulty so now
[267]
that
[267]
understand the types of student loans
[269]
that are generally available to us it's
[271]
important to consider all of our options
[273]
when repaying our loans obviously many
[276]
of us are going to get into a regular
[278]
payment plan with our various loans
[280]
where we're meeting some amount
[282]
hopefully higher than the minimum to
[284]
help chip away at the principal as well
[286]
as the interest in as a reasonably way
[288]
as we can while balancing our other
[290]
financial goals but there are many other
[292]
nuanced options when it comes to
[294]
repayment plans over the course of your
[295]
adulthood for example with private
[297]
student loans you can start repaying
[299]
them while you're in school which can
[301]
potentially save you thousands of
[303]
dollars in the long run after graduation
[305]
you'll start to make principal and
[307]
interest payments every month the amount
[310]
that you're paying every month will be
[311]
determined by a few factors things like
[313]
your interest rate accrued interest
[315]
principal balance and the terms of your
[317]
repayment the longer the term the lower
[320]
the payments but likely are the more
[322]
you'll end up paying in the long term
[323]
because you have a longer period for
[325]
that interest to accrue some private
[327]
loans do have other options like
[329]
forbearance if you can't afford to make
[331]
payments or deferment for things like
[333]
grad school or internships but those
[335]
will depend on the lender in the loan
[336]
private student loans also offer you the
[339]
option to refinance as mentioned before
[341]
which can allow you to change the
[343]
interest and the terms of your repayment
[345]
possibly to your benefit but you'll need
[348]
a pretty good credit score in order to
[349]
be able to do this as for public student
[352]
loan repayments there are also a few
[354]
good options one great advantage is that
[356]
you can change your repayment plan at
[357]
any time with no penalty meaning if
[359]
circumstances change you can adjust your
[362]
student loan repayment to reflect what's
[363]
possible for you you can have a standard
[366]
repayment plan which is a fixed amount
[368]
that guarantees that your loan is paid
[370]
off in a certain amount of time you can
[372]
have a graduated repayment plan wherein
[374]
your repayment plan starts off with a
[376]
lower monthly payment and gradually goes
[379]
higher and higher this is in tandem
[381]
usually with higher earning potential
[382]
you can have an extended repayment plan
[385]
which can lengthen the amount of time
[387]
you have to pay back alone and there's
[389]
also income based repayment where what
[391]
you're paying and how you're paying it
[393]
based on your income and these type of
[395]
plans are the best options for people
[397]
seeking public service loan forgiveness
[398]
and what is the pslf that you may have
[402]
heard so much about basically it's a
[404]
special program where if you work
[406]
full-time for a qualifying employer your
[408]
direct loan balance will be forgiven
[410]
after you've made 120 qualifying monthly
[413]
payments likely under the pay as you
[415]
earn or income based repayment programs
[418]
these are generally government jobs and
[420]
we'll link you guys to a specific list
[422]
of the jobs that will qualify for this
[425]
program and you should absolutely apply
[427]
for this program if you believe that
[429]
you're qualified for it but do remember
[430]
that it's easier said than done getting
[432]
into it only 206 applicants for pslf out
[436]
of 40 9669 applications in 2019 actually
[441]
got their loans forgiven if you need to
[443]
take out student loans to pay for
[444]
college that's totally normal and
[446]
something many of us will decide is in
[449]
our best interest to do in the long term
[450]
but what you must avoid at all cost is
[453]
that really tricky perception that we
[456]
all tend to have in college that this is
[458]
just imaginary money and you won't
[460]
really have to worry about it until
[461]
you're some distant version of yourself
[464]
in the future take it from me a grizzled
[467]
withered disintegrating 31 year old life
[470]
comes at you a lot faster than you think
[473]
and you very soon will be making those
[475]
payments you signed up for so you want
[477]
to make sure that not only do you
[478]
understand the agreement you're entering
[480]
into you're making the agreement that
[482]
works best for your life know your
[484]
options know the difference between
[486]
different types of loans and remember
[488]
that student loans are not free money
[490]
they are very much expensive money don't
[493]
forget to check out the next episode in
[495]
our guide to getting good with money for
[497]
college students and for all things
[498]
talking about money don't forget to
[500]
check out the financial diet here on
[502]
YouTube or all around the internet
Most Recent Videos:
You can go back to the homepage right here: Homepage