Comments on: New Student Loans Require Payments While in School http://greatcollegeadvice.com/new-student-loans-require-payments-while-in-school/ Expert Advice on College Admission Fri, 10 Feb 2012 18:09:20 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Personal Finance Blog Articles this Week | Personal Investment Management and Financial Planning Blog Directory http://greatcollegeadvice.com/new-student-loans-require-payments-while-in-school/comment-page-1/#comment-4020 Personal Finance Blog Articles this Week | Personal Investment Management and Financial Planning Blog Directory Fri, 13 Nov 2009 21:12:32 +0000 http://greatcollegeadvice.com/?p=2033#comment-4020 [...] Montgomery presents New Student Loans Require Payments While in School posted at Great College [...] [...] Montgomery presents New Student Loans Require Payments While in School posted at Great College [...]

]]> By: Mark http://greatcollegeadvice.com/new-student-loans-require-payments-while-in-school/comment-page-1/#comment-2827 Mark Sat, 16 May 2009 15:50:38 +0000 http://greatcollegeadvice.com/?p=2033#comment-2827 Thanks very much for the compliments and for subscribing. I'll look forward to the conversation! Thanks very much for the compliments and for subscribing. I’ll look forward to the conversation!

]]> By: MerrY http://greatcollegeadvice.com/new-student-loans-require-payments-while-in-school/comment-page-1/#comment-2826 MerrY Sat, 16 May 2009 14:55:50 +0000 http://greatcollegeadvice.com/?p=2033#comment-2826 I found your blog on google and read a few of your other posts. I just added you to my Google News Reader. Keep up the good work. Look forward to reading more from you in the future. I found your blog on google and read a few of your other posts. I just added you to my Google News Reader. Keep up the good work. Look forward to reading more from you in the future.

]]> By: Mark http://greatcollegeadvice.com/new-student-loans-require-payments-while-in-school/comment-page-1/#comment-2702 Mark Mon, 13 Apr 2009 00:26:16 +0000 http://greatcollegeadvice.com/?p=2033#comment-2702 Hi, Lacey, and thanks for your comment. Part of the problem here is that too many students think that "financial aid" is "free money." If you don't agree, try searching for "financial aid" on Twitter and see what kids are saying about how they are going to use their aid checks. The point is that loans on the private market do have a price, and students do not see the price, usually, until they have gone into debt up to their eyeballs. The new policies will help students think twice about incurring debts that they cannot afford. Again, this policy does NOT apply to Federal loans. A grace period still applies for those. So borrow the maximum under the Federal loan progarms, if you want and if you can. Best of luck! Hi, Lacey, and thanks for your comment.
Part of the problem here is that too many students think that “financial aid” is “free money.” If you don’t agree, try searching for “financial aid” on Twitter and see what kids are saying about how they are going to use their aid checks. The point is that loans on the private market do have a price, and students do not see the price, usually, until they have gone into debt up to their eyeballs. The new policies will help students think twice about incurring debts that they cannot afford.
Again, this policy does NOT apply to Federal loans. A grace period still applies for those. So borrow the maximum under the Federal loan progarms, if you want and if you can.
Best of luck!

]]> By: Lacey http://greatcollegeadvice.com/new-student-loans-require-payments-while-in-school/comment-page-1/#comment-2681 Lacey Thu, 09 Apr 2009 15:22:29 +0000 http://greatcollegeadvice.com/?p=2033#comment-2681 I am currently a college student, with no job and a full load of classes (I am taking 19 credit hours this semester). I really do not understand how someone can think students will be able to pay their loans off while in school, doesn't that defeat the entire purpose a student takes out the loan in the first place? If I had enough money to pay for all my college expenses I would not be taking out any loans. This idea is rediculous. College students will not be able to pay their loan payments and will therefore result in a bad credit report. I understand that some students take out more than is needed, but that is there fault, they should look at their expenses and be able to get a rough estimate of what is needed. Hopefully someone will realize that no thought was put into this new plan and go back to the way things were. I am currently a college student, with no job and a full load of classes (I am taking 19 credit hours this semester). I really do not understand how someone can think students will be able to pay their loans off while in school, doesn’t that defeat the entire purpose a student takes out the loan in the first place? If I had enough money to pay for all my college expenses I would not be taking out any loans. This idea is rediculous. College students will not be able to pay their loan payments and will therefore result in a bad credit report. I understand that some students take out more than is needed, but that is there fault, they should look at their expenses and be able to get a rough estimate of what is needed. Hopefully someone will realize that no thought was put into this new plan and go back to the way things were.

]]> By: Mark http://greatcollegeadvice.com/new-student-loans-require-payments-while-in-school/comment-page-1/#comment-2581 Mark Thu, 26 Mar 2009 01:21:12 +0000 http://greatcollegeadvice.com/?p=2033#comment-2581 Thanks for your helpful comment, Jessica. Keep in mind, however, that the issue is not a "professional degree" vs. a "liberal arts" degree. It's about taking out loans to pursue your passion. I know of many professionally oriented students who have taken out way too many loans to finance their education, and then regretted the decision. As one student said to me, "accounting is accounting: it's a skill." Why pay megabucks for an expensive accounting degree when an inexpensive one would perhaps serve the same professional purpose? By the same token, one can get a "liberal arts" degree and get a lot out of it...without putting a lot of money into it. Thanks for your helpful comment, Jessica. Keep in mind, however, that the issue is not a “professional degree” vs. a “liberal arts” degree. It’s about taking out loans to pursue your passion. I know of many professionally oriented students who have taken out way too many loans to finance their education, and then regretted the decision. As one student said to me, “accounting is accounting: it’s a skill.” Why pay megabucks for an expensive accounting degree when an inexpensive one would perhaps serve the same professional purpose? By the same token, one can get a “liberal arts” degree and get a lot out of it…without putting a lot of money into it.

]]> By: Moments of Fame « Funny about Money http://greatcollegeadvice.com/new-student-loans-require-payments-while-in-school/comment-page-1/#comment-2577 Moments of Fame « Funny about Money Thu, 26 Mar 2009 00:49:22 +0000 http://greatcollegeadvice.com/?p=2033#comment-2577 [...] of Ben Bernanke! And in the gotcha coming & going department, Mark Montgomery reports that Sallie Mae’s new student loans now require payments while you’re still in school; repayment periods will drop and payments [...] [...] of Ben Bernanke! And in the gotcha coming & going department, Mark Montgomery reports that Sallie Mae’s new student loans now require payments while you’re still in school; repayment periods will drop and payments [...]

]]> By: Jessica Kunkel http://greatcollegeadvice.com/new-student-loans-require-payments-while-in-school/comment-page-1/#comment-2571 Jessica Kunkel Wed, 25 Mar 2009 16:15:11 +0000 http://greatcollegeadvice.com/?p=2033#comment-2571 Excellent article, and I actually think the "repayment while in college" is a good idea, for the students themselves. It makes the loans "real" rather than seeming like "free money." Also, those financial aid officers fail to advise students on the real monetary worth of any given degree. I guarantee that the $70,000 in Stafford loan debt that I accrued for a bachelor's and then master's degree in history is worth much more than the degrees themselves. I will not in my lifetime have a career related to history that compensates, salary-wise, for the enormous cost of this education. Had I begun paying the loans while in school, I think I would have wised up and realized the value of money vs. the value of a generic liberal arts education much sooner. Excellent article, and I actually think the “repayment while in college” is a good idea, for the students themselves. It makes the loans “real” rather than seeming like “free money.”

Also, those financial aid officers fail to advise students on the real monetary worth of any given degree. I guarantee that the $70,000 in Stafford loan debt that I accrued for a bachelor’s and then master’s degree in history is worth much more than the degrees themselves. I will not in my lifetime have a career related to history that compensates, salary-wise, for the enormous cost of this education. Had I begun paying the loans while in school, I think I would have wised up and realized the value of money vs. the value of a generic liberal arts education much sooner.

]]> By: The Carnival of College Admission - MBA Sphere Hosts the latest edition http://greatcollegeadvice.com/new-student-loans-require-payments-while-in-school/comment-page-1/#comment-2563 The Carnival of College Admission - MBA Sphere Hosts the latest edition Wed, 25 Mar 2009 11:56:54 +0000 http://greatcollegeadvice.com/?p=2033#comment-2563 [...] Montgomery presents New Student Loans Require Payments While in School posted at Great College Advice, saying, “The financial crisis is leading to a complete [...] [...] Montgomery presents New Student Loans Require Payments While in School posted at Great College Advice, saying, “The financial crisis is leading to a complete [...]

]]> By: Money Hacks Carnival—Spring Edition | Money TLD http://greatcollegeadvice.com/new-student-loans-require-payments-while-in-school/comment-page-1/#comment-2562 Money Hacks Carnival—Spring Edition | Money TLD Wed, 25 Mar 2009 10:50:18 +0000 http://greatcollegeadvice.com/?p=2033#comment-2562 [...] Montgomery presents New Student Loans Require Payments While in School posted at Great College [...] [...] Montgomery presents New Student Loans Require Payments While in School posted at Great College [...]

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