A formula to avoid finding yourself on financial disaster after you graduate.
Have you heard the horror stories told by those who could never repay their private student loans? Or perhaps has it happened to you and you already know firsthand?
You decided to go to college to study for that precious degree and, like everybody else, you took out a loan, or several loans, to pay for your life as a student.
You graduated and, thanks to the deferment clause in the credit contract,
you begin to pay right after graduation. The problem is that you don’t have
any income because you don’t have a job. And if you are not lucky enough to find a job soon so that you can begin repayments, you will find yourself bankrupt.
On top of this, your fiance, to whom you thought you would be getting married, on hearing of your financial troubles decides to break off the relationship just because he or she does not want you to bring to the marriage the debt you accumulated while you were a student.
Now, what was the problem that led you to this situation?
– Choosing the wrong career?
– Miscalculations on the real amounts you needed to pursue your studies?
– Spending money on unnecessary things?
– Not analyzing the implications of asking for a student loan?
There may be a little bit of each, but basically there is one significant problem: you were borrowing money without any backup, only under the assumption that, after you graduate, you would be able to work and repay the credit.
It is this wrong assumption that leads many graduates to find themselves in default with their credit.
When we borrow money for our studies, or for any other purpose, there is one thing that we need to understand: we will have to repay it and we need to plan for that repayment, otherwise we will find ourselves in a bad economic situation.
Planning on how you will repay your student loan is crucial to assure that you will be able to repay it in full.