Accepting a Loan

Accepting a loan means accepting the responsibility for repaying the money you borrow. Before you borrow money to attend college, it is important that you think through your responses to the following questions:

Is the college or program a good investment?

You have the right to be fully informed about the college’s tuition and refund policies, academic and training programs, financial aid programs, faculty and facilities, and its graduates' success rate in finding jobs. You also have the right to ask how many students complete their degrees at the college and how many of them transfer out.

Does my loan make good financial sense? Are there jobs in your chosen field and how well do they pay?

Some jobs and careers are more stable or higher paying than others. Learn more about hundreds of jobs, including required training, prospects and earnings, in the federal Occupational Outlook Handbook also available in libraries. In addition, you’ll find starting salaries for hundreds of jobs at EdFund's EdWise.

Are there other options?

Check out other ways to pay for college or cut costs.

What are the true costs of my loan?

It usually costs money to borrow money. Make sure you know the true costs of your loan by keeping track of how much you borrow and how much you owe, including interest costs and fees. If you don't make your loan payments on time, you may have to pay late fees and collection costs.

Can I repay it?

Before applying for a loan, determine how much you’ll be able to afford to repay. Estimate how much money you'll need, what your monthly payments and other expenses will be, and what you can expect to earn after graduation. Borrow only what you need and can pay back. Also, keep in mind that the longer you take to pay off your loan, the more interest you'll pay over the life of your loan. To find out more, visit EdFund's EdWise.