5 Fundamental Student Loan Truths

Everyone knows scholarships and grants are the preferable way to finance an education. For most graduate students, loans are a fact of life. It’s commendable that you’re working hard to further your education and improve your future. But there’s often a big difference between what you are eligible to borrow and what you can afford to repay.

The market value of an item is 7-9% more when using student loans. Remember to add this to all of your purchases.
Filing bankruptcy is no longer an option for students. Federal Stafford, Perkins and Graduate Plus loans are not discharged when you file bankruptcy.
Do student discounts really help? Face it, that 10% discount, with your 7% student loan is translated into a 3% discount. Sure you’re saving, but if you don’t need it immediately, don’t buy it. Wait a few months for it to go on sale. But remember you’re better off paying twice as much for something you need than paying ½ price for something you don’t need.
You can run, but you can’t hide! Should you decide to default because you’re overseas, don’t plan on returning, working for an American company or organization, reclaiming your retirement benefits, or applying for another loan. Your credit will be ruined and your wages could be garnished.

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