LITTLE ROCK -- The Arkansas attorney general is offering several tips for students starting school at a new college or university before agreeing to a loan that often takes decades to repay.
"A student loan should be a short-time obligation to give students an opportunity to be successful," Attorney General Leslie Rutledge said in a news release. "Unfortunately, these loans are too often carried over for decades and hold our best and brightest back from making investments or taking risks as entrepreneurs."
The attorney general's office offers the following tips for students considering taking out a student loan:
• Understand the loan.
"Before taking out a loan, make sure you understand the repayment terms and other obligations of the loan, interest rates and how they will be applied to the loan, and where to find your balance and payment schedule after you graduate."
For federal loans, visit the National Student Loan Data System at http://www.nslds.ed.gov.
• Take advantage of the grace period.
"Oftentimes, there is a grace period after you graduate or stop attending a college or university. It is important to know how long the grace period is and whether interest will be charged during the grace period," the AG's office said.
"Grace periods allow you to get your 'feet on the ground' while making a plan to repay the loan."
• Know the repayment options.
"Every loan is different and some offer the chance to change payment options based on your income rather than a set monthly amount. In some cases, if you are going through a financial hardship, there is the ability to temporarily defer payments."
• Be wary of loan consolidation and refinance offers.
Many companies offer loan refinance options, but may not provide the promised service or might provide services that consumers can access for no cost. "Consumers should learn all details about any loan refinance offer before enrolling in one," the AG's office said.
"Check your credit report to see all of your education debts, including federal and private student loans."
The Arkansas Student Loan Authority can be contacted at 800-443-6030 or by calling the attorney general's office at 800-482-8982 or visiting http://www.ArkansasAG.gov.
Society on 08/25/2019