Loans MUST be paid back...it's just a LOAN
By Nicholas Lethbridge
That summer before University or College you applied for assistance for the school year. Life is expensive, loans are a wonderful way to make sure you have all the necessities like food, clothing and supplies for the academic year. The most challenging aspect of your education commonly is paying for the courses themselves. Post-secondary isn’t cheap and that’s why we have loans. Where some view it as ‘free’ money, it will need to be paid back.
As a new student, large sums of money can be a godsend, but also lure temptation. You must allocate, budget and use the loan for its intended purposes. It’s easy to trick ourselves into thinking we have an unlimited supply. Money to see family, out with friends, a new shirt, that concert, all things we didn’t factor. It’s when you get those statements from the bank after your studies have been completed (or not), when the grace periods stop, that you see the scope of that loan (s).
Banks have methods to help you with life after school. Assisting you with your loans such as halting interest, repayment options, these are all things in place which you can discuss with your financial institution. If not dealt with properly they can hurt your credit rating, or make it harder to pursue future loans. Make sure you’re aware of the fine print, and how you will manage your finances. Loans make it easier, but payback is mandatory.