Student Loans 101: Getting Educated

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In just a few weeks, it will all be over. You’ll turn in your last exam and sigh with relief. Then you’ll don your cap and gown, accept your diploma, and pose for photos. Finally, you’ll be off to the real world – to start your job search or, if you’re lucky, your first post-college position.

But one aspect of your education is just beginning: your student loan repayment. This may sound intimidating, especially if the financial vocabulary is new to you. However, with a little research, you’ll find your debt far less daunting. Here are some key points to remember as you prepare to tackle your loans,

1.) Know your loan servicer. Although you’ve borrowed money from the federal government, you’ll your federal loans through a loan servicer, which the federal government will assign you. Common loan servicers include Navient, VSAC, Nelnet, and Granite State. If you took out a private loan, from a bank, for example, you will repay the money you borrowed, plus interest, to that lender.

2.) Understand grace periods. Most federal loans, except for PLUS loans, have a six-month grace period. That means you do not have to start paying your loans until six months after graduation. Use this time to educate yourself about your loan repayment options if you haven’t done so already. And don’t get too complacent: you’ll have to start making payments shortly, so you don’t want to get used to spending a lot of your income.

3.) Know your options. There are lots of ways to repay your student loans. You can pay the same amount every month for up to ten years (Standard Loan Repayment), or you can make payments that increase over time (Graduated Repayment). Some plans take into account your income (Income-Based, Income-Contingent, or Income-Sensitive Repayment.) Other options exist as well. Although you will pay the least interest – and thus the least amount of money – under the Standard Repayment plan, other schemes may be better suited to your financial situation. This is particularly true if you find yourself working less hours or earning less money than you anticipated. Visit https://studentaid.ed.gov/sa/repay-loans/understand/plans for an overview of your repayment options.

4.) Beg forgiveness – or at least a reprieve. If you return to school, are active-duty military, find yourself unemployed, or experience economic hardship, including Peace Corps service, you may be able to defer your loans. That means you won’t have to make payments for a period of time. Depending on what type of loan you have, the government may even pay your interest during your deferment. If you find yourself unable to make payments, ask your loan servicer for information about your options. In addition, the federal government offers loan forgiveness programs for some teachers and public servants. If you qualify, you may not have to pay back some of your loans. Visit https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation for more information.

5.) Do the math. Know how much you borrowed and how much you can expect to pay, over time, under the various repayment plans. Fortunately, the federal government offers a website that will do the calculations for you. You’ll need your FSA id to log in.

It’s natural to be apprehensive about your student loans. After all, you borrowed a lot of money to get where you are today, and you may already be anxious about starting your career. However, by educating yourself about student loans and your debt, you can prevent most problems and ensure a much brighter financial future.

-Dorothy A. Dahm

Game of Life: Come Learn, Come Play!

wheelAs college students, we’re caught up with our social and academic lives. With so many thoughts zooming in and out of our heads, where do we find time to think about life after college? Although we’re in college to prepare for our careers, we rarely ponder life after graduation.

It’s time to narrow that gap. On Wednesday March 23, 2016 from 5:00-6:30 PM in the 1787 Room, the Heritage Family Credit Union, Academic Support Center, and Student Life will host a Game of Life Financial Reality Fair to heighten students’ awareness of financial literacy and personal finances after graduation. You can start at 5, 5:30, or 6 pm, and it takes about a half an hour to play. After you play, stick around for free pizza and a chat about the game.

It works a lot like the board game Life. You’ll choose a career and create a monthly budget based on a starting salary for that position. Then you’ll visit various stations to explore housing, transportation, food, night life, pets, furniture, and cell phone options. See how far your money goes! In the end, you’ll meet with a financial advisor to discuss your budget and assess how well you made out. But don’t worry: in the Game of Life, you get a second chance to make your budget work!

This will be the second annual Game of Life held at Castleton. Last year, 100 students attended. We’re hoping this year will be even bigger – and we can’t wait to see you there.

-Katie Haseltine

Katie Haseltine is a junior Management and Marketing major who tutors math and writing and serves as a Student Ambassador in Admissions at Castleton University. She is also actively involved in planning events through the Campus Activities Board.

Spring 2016: Here’s What’s Going On at Academic Support

photo-for-student-access-and-opp-guide-march-2008From paying for college to thriving after graduation, we’ve got you covered!  

Thursday, January 28th. Resume and Cover Letter Workshop. It’s never too early to start preparing for your job search. Renée Beaupre-White, Director of Career Services, will help you market your best asset: you! Academic Support.2-3 pm.

Wednesday, February 10th. FAFSA Renewal Drop-In. Bring your questions about completing the FAFSA and applying for financial aid. Academic Support. 2-4 pm.

Thursday, February 11th. Interviewing Strategies. Don’t sweat the big interview! Renée Beaupre-White tells you how to impress. Academic Support. 2-3 pm.

Wednesday, February 24th. Scholarship Help Drop-In. Come with questions about scholarship applications and essays. Academic Support. 2-4 pm.

Thursday, February 25th. LinkedIn Profile. Learn how social media can help you boost your career. Academic Support. 2-3 pm.

Thursday, March, 10th. Job and Internship Strategies. Ready, set, go! Renée Beaupre-White helps you translate your dreams into reality. Academic Support. 2-3 pm.

Wednesday, March 23rd. Game of Life. The most fun you’ll ever have learning about saving money and planning for the future. Location TBA. 5-7 pm.

Thursday, April 7th. Resume and Cover Letter Workshop. Renée Beaupre-White will help you market your best asset: you! Academic Support. 2-3 pm.

Wednesday, April 13th. Senior Loan Event. Dinner – and straight talk about repaying your loans. Academic Support. 4 pm.

Saturday, April 30th. TRIO Community Service Day. Join students from all over the state and give back to your community. Location TBD. 9 am.

For more information, call 468-1347, visit www.castleton.edu/academicsupport, like us on Facebook (Castleton Academic Support), or follow us on Twitter (@CastletonTrio).