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What is the negative affect of student loans?


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2006-11-19 23:20:55
2006-11-19 23:20:55

If it is your only option, I argue the negatives are trumped by the positives of having a higher education. First of all they are loans, so it is a debt. Incurring debt, by default, is generally considered a negative. You cannot get rid of them by filing bankruptcy, so don't think that is an option either. Where people run into the most trouble is either A. deferrals - which delays repayment, but the interest continues to increase the total amount due B. They don't pay them at all, and end up with garnished wages. They are generally lower interest rates (even at the private level, def. on the federally) then credit cards or other methods you could attempt to finance education.


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No, private lending institutions (such as banks) also give out student loans. contains information on student loans application, and how to pay for college. has to do with private student loans

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Go to banks and they can show how to get direct student loans. Also consider searching the web for direct student loans, and ask trusted friends, colleagues, and family members about this direct student loans. good luck.

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OK, I cannot agree. I have about $39,000 in student loans and before I was in repayment period my loans showed up on my credit report but showed deferred status with a date. I have now graduated and I still have a six month grace period. Your student loans are still factored into your overall credit score and they affect your credit score negatively only if they are not paid on time.AnswerNOT MUCH, AS LONG AS YOU PAY YOUR STUDENT LOANS ON-TIME AFTER YOUR GRACE PERIOD (WHILE ATTENDING COLLEGE) THEN YOU SHOULD BE FINE. If you're still a student, student loans do not show up on a credit report at all. They only appear after you have graduated, withdrawn, dropped-out, etc. and the repayment starts.11/01/2010 I will have to disagree with the above answer. Student loans show up on your credit report before you graduate-how do I know this?-Well because I am a student with loans and those loans have showed up on my credit report under "deferred"-they have actually helped my credit score, BUT they will HURT it if and ONLY IF, when it is time to repay I default. I agree with the 1st answer and not the 2nd. Maybe times have changed since the 2nd person answered this question or even has knowledge of the credit score system in conjunction with student loans. These are government backed up student loans that I am referring to, NOT bank student loans.

Personal loans should have a lower interest rate than student loans.

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If the student loan is a federal loan and not a private loan then the answer is no. Federal student loans can not be included in bankruptcy, you will always be responsible for repayment of FEDERAL student loans.

Yes, student loans can not be discharged in bankruptcy. You can consolidate your loans and get a smaller payment.

You can learn about college education loans from government websites such as Student Loans and Student Aid. Other websites include CU Student Loans and Scholarships.

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