Student Loan Myths

Student loans are scary enough without half truths and myths hiding in every search you make. It is crucial for students to be informed as to what student loans are and what they aren't. Here are a few common student loan myths to get you on the path to student loan knowledge.

1. Student loan forgiveness is only given to people who work in public service.

There are other ways to get your federal loan debt forgiven, not only through Public Service Loan Forgiveness.

You can always sign up for income-driven repayment plans.

2. Repaying student loans should be top priority.

This is not always the case. There are a variety of debts you will take on after graduating. It is important to focus on debt which has a higher interest rate than your student loans because it will cost you more money. I would not suggest putting off paying your student loans completely.

3. Consolidation is the best way for student loans.

Consolidation was just a way for graduates to simplify their monthly payments. However, this is no longer necessary for students who have their federal loans with the same servicer. Currently, this method is useful as a qualification for Public Service Loan Forgiveness or income-driven repayment loans.

4. Your student loans' interest rates will always be the same.

This is not true. There are plenty of ways to lower your interest rates. One way is through student loan refinancing.

While paying back student loans may not be the easiest task, hopefully understanding how to and what is true about student loans will help ease the stress.