We’ve Moved!

 

Hello debt-free degree seekers!

I’ve made some hosting changes with the blog, so check out my new location, Loan-Free Degree, if you are looking for more great information about going to college without debt.  You’ll find the same encouragement and helpful advice you need. See you there!

The Basics: Loans

Here’s the deal: since the entire purpose of this blog is to stay away from debt, I’m not going to beat around the bush when it comes to talking about loans. If you decide to go for them, I wish you the best in paying them off as quickly as possible.

Why NOT go for them? You pay them back – every penny. Actually, you pay them back plus interest. So really when you think about paying for college with loans, make sure you realize that you are paying the college AND the bank or government.  Also, your loans don’t go away – even if you were ever to go into bankruptcy, you’d still be chased down to pay off your loans.

What are they? There are subsidized, unsubsidized, Stafford, and direct loans. Here’s a short summary of each:

Subsidized: You begin making payments on this loan six months after you graduate, and the interest begins accruing then.

Unsubsidized: The interest begins accruing from the first month you have taken out the loan, even if you aren’t repaying it for years.

Stafford and Direct loans are basically the same thing: Same interest rate, same annual loan limits, and same FAFSA application process. The main difference is that with the direct loan you are borrowing from the government. Stafford loans come from banks or credit unions.

Stay tuned for more ways to avoid loans.