Navigating student loans is terrifying. Paying for college is the most stressful part of the process, and it's no surprise why. Most freshman in college have little to no financial literacy and schools rarely prepare students for the burden they'll need to take on to reach their higher education goals.
In this episode we'll tell you exactly what you need to know in order to take on student loans without drowning in debt upon graduation.
Check out the show notes below for our list of resources Michelle mentions throughout the podcast.
Department of Education Page on Student loans: https://studentaid.ed.gov/sa/
Federal vs Private Loans: https://studentaid.ed.gov/sa/types/loans/federal-vs-private
Variable vs Fixed Interest Rates: https://studentloanhero.com/featured/fixed-vs-variable-rate-student-loans-which-choose/Note: be extremely careful with variable interest loans. They are usually tied to a federal index, such as the LIBOR, and change with the index. Many banks claim that you won't be likely to see significant increases, but be cautious: Michelle saw a 6% increase in the interest rate of one of her loans over a period of 3 years. We cannot advocate for variable interest rate loans on this podcast.
Tax Credits Associated with Student Loans: https://turbotax.intuit.com/tax-tips/college-and-education/about-student-loan-tax-credits/L0mIiywan
Deferment and Forbearance: https://studentaid.ed.gov/sa/repay-loans/deferment-forbearance
Financial Literacy/Understanding Investing Basics: https://jlcollinsnh.com/stock-series/Note: We're including this here because if you're going to have a student loan, you NEED to understand how the stock market works. Reading this now will help you understand how to manage your entire financial life, including your loans. Here's a direct link to the section on paying back student loans: https://jlcollinsnh.com/2015/03/26/stocks-part-xxviii-debt-the-unacceptable-burden/
Student Loan Forgiveness and why 99% of Applicants for Loan Forgiveness are Rejected: https://www.forbes.com/sites/zackfriedman/2019/05/01/99-of-borrowers-rejected-again-for-student-loan-forgiveness/
About Michelle Jamesina and Christina Cheng
Christina and Michelle are entrepreneurs that mentor high school and college students in their free time. Both of their businesses are entirely online, and they both travel the world extensively, learning about other cultures and education systems in the process. They both graduated from college in 2015.