Responsible Borrowing


College or career school is an important step in achieving your future goals, and there are many financial aid options to consider. Did you know that a federal student loan can be a great way to help pay for school? After all, a grant, work-study job, or a scholarship can be a huge help, but these forms of aid may not cover the full cost of attending school. So if you decide to take out a federal student loan, it’s important to understand what you are getting and be a responsible borrower. Getting a loan is a big decision. You might be paying your loans back for 10 years or more, so take your time to decide. And remember to accept only the loans that you need, because you’ll have to repay them once you’re out of school. Here are a few things to keep in mind when deciding how much to borrow. Do some research: Make sure that your school is the right fit for you both educationally and financially. Location, location, location: The amount of money you need to borrow can depend a lot on where your school is located. In-state schools and community colleges may cost less than out-of-state schools. And finally, getting an idea of your future income is also important when deciding how much to borrow. Starting salaries vary greatly depending on your career path, so it’s worth thinking about how the amount of your loan will affect your future finances. After all, your student loan payments should be only a small percentage of your salary after you graduate. Once you’ve decided on your school and figured out how much money you should borrow, you’ll need to sign a promissory note, which is an agreement to repay your loan. Make sure you keep a copy for your records. If you do take out loans, you’ll need to keep in touch with your loan servicer when repayment begins. Your loan servicer will make this easy for you you by offering web, e mail, and phone contact options. If you make this investment in your future, being an informed, responsible borrower can pay off in a big way. If you have questions or need more information, please visit StudentAid.gov.

100 thoughts on “Responsible Borrowing”

  1. I say no more debt, no more financial slavery, no more life long repayments. Yes to Dave Ramsey, yes to paying cash, yes to work, and yes to freedom.

  2. Indeed, some european countries give students free money, yet they DONT have the best jobs with better enviroment, salary, and benefits. But I agree they should cover most of the expenses since Financial Aid only gives like a fifth of the total cost of attendance :/

  3. I am having trouble getting enough money together for college. They said I have two weeks to pay or I get dropped. I'm trying to become a firefighter, with a low salary because I want to save lives and help people. And this is how i'm treated? 

  4. anyone else think its funny that the government is trying to make us; as people in its likeness… forever in debt and no way out without robbing from the poor…

  5. Loans are the DEVIL!! Lol. Jk. But no, really. I'm basically being forced to take out a loan and I have no idea why I am even taking college classes right now. Someone, seriously, just kill me. 

  6. If possible don't take out fat ass loans unless you want to help the Us government pay off their fat ass debt.

  7. This is exactly why we want Bernie Sanders or Elizabeth Warren for President. They want to get rid of this shit completely. College education was free 45 years ago. The federal government wastefully spends our tax dollars on war and ridiculous things. I am not repaying my loans until they stop war and give a shit.  

  8. Instead of profiting of the misery of a generation racked with massive expenses and debt, how about you vampires in congress make education free for all people.

  9. The problem isn't the borrowing…Americans are good at borrowing. The problem is the loan that incentive for colleges to jack up costs even more. Why are colleges charging more for education when at a time the degrees are next to worthless that can't get a job? Seems like too many sheeple are getting slaughtered when they should rethink education. The amount of money spent could be used to put it all on the Internet for free and have it accredited, that should make colleges lower their price if there was competition. Why buy music and movies when you can download it for free? Eventually education like Hollywood will have to face reality and change their business model when education is offered for free online. The people spending money now or have borrowed are suckers.

  10. having enough money for community college is very important and I need to be careful when I borrow for community college

  11. Elizabeth Warren (the Democratic Senator from Massachusetts) proposed a bill that would allow students to refinance their loans at the historically low interest rates we have had.  Republicans would have none of it because it would have eaten into the corporate profits of those lenders benefiting from the providing the loans.  These same lenders who want to charge the higher rates also don't want students to be able to include student loans in bankruptcy.  They want it both ways. All the rewards without the risks.  Surprise surprise.

  12. Yes, I agree that student loans may be the only way to attend college. Also, you need to be careful and only take out the loans necessary and no more.

  13. Attention youth of America! if you cant afford college you have 3 options:
    1. join the military for the post 9/11 G.I bill, so that you can afford college after service.
    2. Get a minimum wage job that you might get by on if you don't have a family.
    3. Take out a fuck ton of student loans and pay them back over the next 10 years of your life.
    Secret option number 4. get born into a rich family that can pay for your college.

  14. They make it look so easy and friendly. They welcome you with loving arms. They show their true colors, however, once they have you trapped in those arms.

  15. THERE IS NO RESPONSIBLE ADMINISTERING BY THE PARTIES OF THE LOAN, FOLKS!!!  THERE ARE AT LEAST THREE PARTIES TO A FED LOAN – THE SCHOOL, THE STUDENT, AND FED LOAN.  THEY DO A LOT OF CORRUPTED THINGS, BREECHING THE LOANS, AND  SAY TOO BAD!

  16. I work four jobs and can't make it.  I am going back to school with the hopes of getting a higher paying job helping people.  If I can make a difference in one persons life then its all worth while.

  17. I live abroad but im american and seriously its amazing how other countries treat their university students. In australia all permanent residents/citizens are applicable for a commonwealth supported place where the government pays for 50% of your tuition. Australian citizens like my friends all be getting no interest loans that only require repayment when their salaries exceed 50,000 (and even then they pay a small amount in their taxes over the years so they dont get hit financially). Meanwhile the US government is out here acting like its the 1850s and going to university should be only for rich people, and us filthy poor people shouldnt even think about dirtying the hallowed halls of a tertiary institution

  18. Isn't it wonderful how the government uses it's citizens secondary education as a way to make money rather than see it as a social investment. America sucks.

  19. If the investment in yourself and your future isn't worth it – then don't do it.  Otherwise, be grateful for the opportunity and make the most of it.

  20. If only borrowing was as easy as this video makes it look. Basically since I'm not rich enough to pay for school and not poor enough to get the grants I need, I will paying off loans for college for the next decade(s). Would it kill colleges to lower tuition? I shouldn't have to be penalized for wanting to further my education in order to prepare for my future career.

  21. Yea, somehow I got duped into owing $20k and I did not do but a year and a half of courses … I want a refund. I cannot even get a transcript for the schooling I have done.

  22. "This degree is so important to me. So whatever I borrow to help me financially, It will be done with caution and invested in my career and education.

  23. good luck everybody, hope you all get six figure jobs so you can help pay my social security😁 Im going to be a teacher so this video does not help me at all, teachers don't make shit but end up producing future billionaires, so sad😢.

  24. My yearly expenses for a public college is almost 20k but then I'm only allowed to take out 7k in student loans?
    Dude my private loans are through the roof! rip me lol

  25. "Oh the Place you'll go if it weren't for Student Debt, Classism, & Wage Labor"
    Thanks Capitalism, Neoliberalism, and Neo-Feudalism what would we do without you?

  26. Vanessa I have a loan and I promised to pay for the loan but somehow the taxes got backed up and there still holding the money my credit is still going up its up to 300.00 now Now they are saying something about another location for the deposit what do I do and what is this about rerouting the money exchange What next.

  27. Love how non of you in the comments understand basic economics. Perhaps you should use some of your loan money to take a course in macro economics..

  28. It is a good idea to make monthly interest payment that way by the time you graduate and need to start paying back the loan. You have paid down considerably.

  29. someone who has asked for a loan of money that can tell me how long it takes to approve and give the money?

  30. You guys could lower tuition. People shouldn't have to be afraid to further their education in a country like the United States. Even Algerians don't have to worry about this ridiculousness. Education should be the primary focus of any country, especially first-world nations. Everyone benefits when citizens of a nation are educated.

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