College education is quite expensive nowadays. The Tuition fee rate has been increasing in the recent years which caused a decline in the number of enrollees. High tuition fee cost can be a big hindrance for college students. Fortunately, student loans are available to assist individuals acquire their college degrees.
Myths about student loans have been widely circulating in the public. These myths are usually affecting the decisions of people applying for student loans.
Here are three common myths about student loans:
Students have to personally pay the tuition fee at universities.
One popular belief that people have in mind about student loans is that students have to get the money from the lender and personally pay the tuition fee in their schools. Financial institutions usually pay the studentâs tuition fee directly to the school. Students donât have to spend trips to collect money from the lender and travel back to the school campus.
Student Loans Will Put a Person in debt for the rest of their life.
Depending on the terms of the student loan, the repayment could last up to 30 years. The long term financial obligation from a student loan may be waived if the borrower applies for a forgiveness Program. This type of program grant borrowers an opportunity to eliminate the existing financial obligation from student loans. Student loan forgiveness programs are usually granted to students pursuing a career in Military, Teaching and Medical profession.
Terms for repayment will never change.
A change in the agreed terms and condition is very rare. But, it doesnât mean that itâs not possible. Actually, changes in repayment conditions may occur if ordered and implemented by the government. Itâs worth while to be aware of possible changes in the future.