The excitement of college graduation has come and gone for many students facing repaying student loans. In tonight’s Money Monday, we have some pointers to get that student loan debt in check.
WSVN — While celebrating the graduation of her daughter, Christina Cook found out putting off paying her own student loan was a huge mistake.
Christina Cook: “Well, my student loan was for $3,000 and now I owe almost $13,000. So to have $10,000 more on top of it was a shock.”
Like many college students, she let that debt slide until she got a knock on the door and was served with a bill.
Christina Cook: “It’s like easy money. You sit there, you go to school, you have the money and then when you’re done with school, it’s like ‘OK, how do I pay this off?'”
It’s a challenge for most college grads according to attorney Chad Van Horn.
Chad Van Horn: “The Department of Education shows that 10 percent of student loans are delinquent on their student loan debt, with another 10 percent that have defaulted on their student loan debt.”
He helps people get out from under education debts and has come up with some pointers.
First be careful who you borrow from.
Chad Van Horn: “Make sure that you’re getting federal loans if you’re in school.”
If you have private loans, pay those off first.
Chad Van Horn: “There’s much less options for the private loans than the federal loans.”
And never assume you can hide from student loans.
Chad Van Horn: “Unfortunately, you can’t defer and forbear these loans forever. You’re going to have to find a way to repay them.”
Christina Cook: “If you let it go it ends up to this big, escalated money amount.”
Your best bet, work out a payment plan.
Chad Van Horn: “The biggest mistake that I see that grads are making routinely is they’re relying on the servicer to make the decision for them.”
Christina is working with Chad to get her loans paid and to help others stay out of the trouble.
Christina Cook: “Don’t let it go. Don’t let it get that far. If you get one letter, call an attorney.”
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