Answered

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What do you think you should be aware of when taking out Student Loans? Why?

Sagot :

Because you may not need them at the time
DrippQueenMo

Answer:

Be aware that you may have to pay interest, It may hurt your debt-to-income ratio and and if you fall behind on student loan repayment it can lead to delinquency and default.

Explanation:

You'll have to pay interest.

One of the worst things about student loans is the fact that you'll always pay more than you originally borrowed, thanks to interest. According to 2017 research from New America, the average interest rate across all student loans is 5.8%, but that can vary depending on the type of loan that you take out.

Student loans can hurt your debt-to-income ratio.

So the more of your income that's spent on debt payments, the higher your debt-to-income ratio will be. Ideally, this ratio should be under 36%. If it's much higher, it could affect your ability to get another loan down the road.

Falling behind on student loan repayment can lead to delinquency and default.

After just graduating from college, you might find yourself living on a modest income. If you have student loan debt on top of that, it could be a bit of a struggle to make those monthly payments.

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