Student Loans Often a Better Option Than Credit Cards for College Costs
FRESNO, Calif. – As college costs continue โto โrise, students are increasingly tempted to rely on credit โขcards to cover expenses, โฃbut financial experts warn this can be a costly mistake.โ Student loans, despite โคcarrying โdebt, frequently offer more favorable terms and long-term benefits than โracking up โฃcredit card balances.
Many students โฃface the tough choice between taking on debt and โคcovering educational expenses. According to financial advisor Coleman, student loans typically have lower interest rates and offer borrower protections unavailable with credit cards. These loans also don’t require repayment untilโ after graduation or enrollment ceases, providing crucial financial breathing room during studies.
Colemanโ emphasized theโข potential for loan forgiveness programs, stating, “Depending โขon whatโค employer you work for, they โmay be forgiven.” This benefit, โcoupled with deferred payments, makes student loans a more manageable option for many.
The stress of juggling a full course load with one or two jobs to pay off credit card debt can significantly impact academicโ performance, Coleman explained. “Itโค becomes very stressful. It eats up timeโ they could โbeโ spending studying.”
Before deciding on a loan, students should consult their campusโฃ financial aid office or a student loan servicer to understand repayment โoptions and ensure โthey “borrow frugally to make sure you can afford those โฃpayments after college,” Coleman advised. Many manageable payment plansโ are available that students may be unawareโ of.
Students can also track everyday expenses to better manage their budgets. ABC30’s Price Tracker (https://abc30.com/pricetracker/) provides data on local โฃgrocery, housing, and gas prices.
