Robertina,
It's great that you make them aware of their responsibilities and help them plan before starting the program. Setting the expectations early and then following up throughout their enrollment will keep them on track.
I agree completely! Early planning is essential for long-term success. Students who over-borrow or wait until the end of grace to think about loan payments and family budget are more likely to default.
Kellee Gunderson
Dealing with somewhat of a younger generation, I see that as well. Student's don't realize that taking out a student loan is a huge deal and they think that if they don't think about it, it'll just go away. I too encourage all the students to reach out and ask for help if they are having any issues in meeting the required monthly payments. I stress that if it goes ignored, it will not miraculously disappear and there are some serious consequences which will set you up for some difficult times in the future. I want to make sure they understand fully what their responsibilities are as a FSA borrower.
Ashley,
When I was a student, it was common for my peers to take out extra loans to pay off credit cards or other bills. Student loans can wisely be used to help cover living expenses, but many of us did not make the necessary lifestyle changes. We spent too much, selected cars or apartments that were beyond our means, went to restaurants too often, etc., and relied on student loans to fill in the gaps. Too many borrowers believe that student loan debt can be postponed indefinitely, or do not consider it as “real†as car loans or a home mortgage. As you suggest, it is crucial for us to help students truly understand loan obligations and consequences.
Kellee Gunderson
