“Finishing college is surely cause to celebrate—but it is also time for some hard realities to hit.” 

This article provides information about what happens after graduation and you have to start paying back student loans.  Specific information includes:

1. When you will start making payments
2. How much you will pay and which repayment option to consider
3. How to make your payments
4. What happens if you want to change your repayment plan
5. The importance of making a budget that includes your loan payments.

Note:  There are also links to a “very informative” video and additional articles at the bottom of this article that provide even more information about student loans and what happens if you don’t make payments.  Definitely worth a click.

For more information, click here.

Teaching Suggestions

You may want to use the information in this blog post and the original article to

• Help students understand that student loans are one way to finance their education, but loans should not be considered free money that doesn’t have to be repaid.
• Illustrate what can happen if student loans are not paid back.

Discussion Questions

1. Many students obtain student loans to help pay for their college education. Are there other options that can be used to pay for college?
2. Assuming that you decide a student loan is the best way to obtain the money you need to pay for college, what steps can you take to understand the conditions of the loan agreement that you will sign in order to obtain the loan money?
3. What happens when someone finishes college, but doesn’t make the student loan payments that are required?