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วันเสาร์ที่ 9 กุมภาพันธ์ พ.ศ. 2551

Having A Student Loans Can Ruin Your Personal Credit

Having A Student Loans Can Ruin Your Personal Credit

by Robert Bain


Do you know how student loans you own affect your personal credit? If you aren't sure or you haven't thought about it you need to have all the facts. Everything with it isn't as cut and dried as the lenders would like you to believe. Of course student loans are a very good way to pay for college if you have no other options. You just don't want to complete your degree and owe a large sum of money.

ust because you are eligible for a set amount of money under a student loan program, that doesn't mean you should access all of it. Many people do though and they use the extra money for living expenses, to purchase frivolous items, or to take a vacation. The less money you borrow for school the better off you will be. Your finances will also be in better shape.

For those students that go to college right after high school, they may not have too much information about their credit at all. Many of them don't even have any established so they haven't given it too much thought. However, this concept can prove to be a very serious mistake. A person can pay for it years into the future at the mercy of lenders. They may need a co-signer or they may have to pay high rates of interest to obtain any type of credit.

If you can't meet the obligations of your student loans you need to be very responsible about it. Find out about applying for a hardship or for getting a temporary deferment. Payments can be reduced for a period of time to help out as well. If you simply avoid the issue that you owe them though you may find yourself dealing with a collection agency that isn't very friendly at all.

Still, getting those arrangements made aren't going to solve your issues. When you owe money for student loans it shows up on your credit report. If you aren't showing a regular payment history on the balance the lenders are going to be very wary about loaning you any money. It is just too high of a risk for them.

Don't get yourself wrapped up in owing so much money that it takes you ten or more years to pay off the student loans. It is going to lower your creditworthiness and therefore affect all other aspects. Pay all you can each month towards eliminating that debt in full. A low payment means you will have to pay on it longer and have to spend more on interest. Give up some luxuries and apply the extra to the loans.

Be very careful with student loans so that you don't end up in a bad situation. Your personal credit isn't something to take lightly. Know how much money you need as well as what it is going to take to pay it all back. Only turn to student loans as a last resort for paying for your education.

Student loans can be a viable option for completing your educational goals. Just make sure you understand the long term effects on your personal credit. Schedule an appointment with a financial aid counselor at the college so you can be sure you know all of your options.

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