Essay Preview: Student Loans
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Borrowing too much debt can cause temporary as well as long term damage. When students borrow too much money they find it hard to pay back. Making on time monthly payments is very important to the students financial as well as educational future. When the student falls behind in payments not only is this being reflected on their credit score, it is possible the debit will fall into default meaning they have failed to meet the agreed terms of the loan for repayment. This is the worst thing to have happen with student loans because it is not only damaging credit, it will prevent the student from getting federal aid as well as student loans in the future. For me, federal aid and student loans are providing me the chance to make something of my life by completing college.
When the time comes time to start paying my loans off, after graduation, I plan to make my small payments as agreed to via a direct transfer from my bank. This is a preferred payment method of mine for many reasons. If I find that I am having issues making the payments as agreed to, I will contact the financial company who issued the loan to work out an agreement. I have learned depending on the situation the loan may be deferred for up to three years to help from defaulting on the loan. I will also be using my reimbursement from my employer to help pay off the loans quickly.