College Loans: Biggest Mistake Students Make?

So you have your college diploma, a lot of debt, and no job? You aren't alone. According to a report in U.S. News and World Report, some college graduates who attend "for-profit" schools have twice as much debt as others.

How can you avoid excessive college debt and what should you do if you are already in deep? Financial experts at Spartanburg Community College say the biggest mistake they see students make is taking more financial aid than they need. According to Ron Jackson, Vice President of Student Affairs, "In terms of student debt, the most important thing to understand is while there are large amounts of monies they may be eligible for, if they will only take what they need, as opposed to what's available to them, then they will be much better off at the end of their educational career."

Concerns about a 350% percent increase in student loans last August, followed by a downturn in the economy, led the college to become one of the first in the area to develop a financial literacy program, which will offer workshops in the fall. Nancy Garmroth, Dean of Admissions and Financial Aid, says, the need to educate students about budgets and planning is critical. "They are not getting it at home and they are not getting it in high school… We are hoping the content of the workshops that we will be offering in the fall will be incorporated into a mandatory course,” says Garmroth.

Garmroth says if you are a college graduate in debt, with no job; contact your lender to make arrangements. You do not want to default on a student loan. She suggests you also contact a credit counseling company like Compass of Carolina to help you. Live at home if you have to she says, and make your minimum payments on all debt first, then pay off higher interest credit cards.

Spartanburg Community College Dollar$ and $ense workshops:
Information to Help You Manage Your Personal Finances through College and Beyond.

Saving and Budgeting
Managing Credit and Debt
Protecting your Identity
Federal Stafford Student Loans
How to be Successful in College

Wednesdays 4:30-5:30
September 23, 2009
September 39, 2009
October 7, 2009
October 14, 2009
October 28, 2009

Thursdays 12L30-1:30
September 24, 2009
October 1, 2009
October 8, 2009
October 15, 2009
October 29, 2009

Terhune Student Services Building – Commissioner’s Dining Room (ground floor across for the BookInn)
Presented by the SCC Financial Aid Office
For more information call (864) 592-4810 or 1-888-591-3810
Email question FA-Questions@sccsc.edu

Mapping Your Future: http://www.mappingyourfuture.org/money/

Jump$tart Coalition: http://www.jumpstart.org/

U.S. Financial Literacy and Education Commission: http://www.mymoney.gov/

College Loans: Private Vs. Federal: http://finance.yahoo.com/news/College-Loans-Private-Vs-investopedia-15320795.html?.v=1

College grads get your finances on track: http://www.stltoday.com/stltoday/lifestyle/stories.nsf/spendsmart/story/C17C4BC3AFFE96ED862575BD0058A600?OpenDocument

Student loans: Don't put off repaying them: http://www.roanoke.com/business/wb/205838

Student loans repayments based on income: http://news.cincinnati.com/apps/pbcs.dll/article?AID=/AB/20090525/BIZ/905250302/

Simple Steps to Achieve a Better Credit Score: http://www.carteretnewstimes.com/articles/2009/05/25/ara/hot_topics/8402.txt