When you took out loans to help pay your way through college, you may have done so with the belief that you would land a high-paying job after that would give you the ability to pay them back. This is not always how things work, though, and many Americans facing similar circumstances find that they struggle to repay the loans they took out.
Many misconceptions surround the student loan and repayment processes. As someone struggling to repay your student loans, separating fact from fiction may help you figure out how to restructure your loans or otherwise regain control over them. Here are some of today’s common myths surrounding student loans.
Myth: You should not pay back loans during school
You do not have to make payments on your student loans while you are an active student. However, this does not mean you should not do so. Making even small payments of $25 a month or so lowers the balance and cuts down on how much interest you must pay. So, if you have the ability to make these small payments while in school, consider doing so.
Myth: You should always refinance your student loans
If interest rates for student loans are now lower than they were when you secured yours, you may think it is wise to refinance them. If you have a federal loan, though, you may want to think twice before doing so because your only option moving forward would be to get a private loan. With a private loan, you become ineligible for income-driven repayment and other options. Working with a bankruptcy attorney may help you develop a better understanding of your loans and your repayment options.