How do loans and repayment work? Advice/tips?

Hi,

I am a first generation college student and don’t have anyone in my family to ask for help.
I am hoping that what other college students or parents have gone through with loans and repayment can give me a sense of what it is and how it works. The financial aid office was not very helpful and I ended up more confused.

My scholarship and grants ended up covering all of my tuition and fees and I have some extra money left over from that that I am putting towards housing and meals. In total, I am paying around $2,500 a year for housing (meals included) while tuition and fees are covered. I am thinking of taking out a loan of $3,000-$3,500 (this would cover my housing and meals plus textbooks and other supplies I may need). If I take out this loan, will I be able to start paying it off over the summer? I am thinking of working all summer and I know I won’t pay it all off, but I want to know if it is possible to start now rather than wait it out until I graduate. Something is better than nothing!

Any advice/tips would be extremely helpful. My family may be able to contribute to some of the housing costs, but I think I am on my own for textbooks and supplies. All in all, however, I am probably looking at $2,500-$3,500 in loans for my first year. Is this too much? I am scared I will not be able to pay off my loans in time and I initially did not want to take any out, but I guess I have to because money is kind of tight right now. Thanks in advance!

You can work this summer then borrow what you need in the fall. Then next spring borrow what you need for the spring semester. Federal student loans of $3500/year aren’t horrible. As you get more work experience you may not have to borrow at all.

If you’ve been offered subsidized loans, the government makes your interest payment while you are in school. Take them first. If you take unsubsidized loans they begin to pile up interest while you are in school. The rates are low but some students choose to pay the interest while they are in school. As a first year you can borrow up to $3500 total. I want to mention to try and get a credit card. You can get a secured card if you don’t have credit. With that join Amazon Prime and rent your textbooks as much as possible. Amazon sends you a shipping label at the end of the semester. My son’s college lists $1200 a year for textbooks and he has never spent over $250 per semester. He’s a rising senior.