Student Lending- An Interview With A Student Borrower

The following interview was done with a young acquaintance (let’s call her Sylvie) who has experience with student lending and who taken out a number of federal student loans. Her student lending was primarily for post-graduate studies for a master’s and PHD degrees. She does not offer any horror stories about student lending but perhaps her experience and that of her husband will help other

borrowers how to keep their student loans under control.

What is your history with student loans and student lending?

Sylvie Response- I was one of fortunate people whose parents paid for my undergraduate degree. I took out my first student loan when I was student teaching, at the end of my undergraduate work. Although my parents covered my tuition and some expenses, I was unable to work while student teaching full time for a semester. I used the loan to cover rent and living expenses. I then took out some loans to pay for the majority of my master's degree tuition and book expenses. Subsequently, I have taken out some loans, (along with winning a few scholarships and paying out of pocket), to help pay for a principal license and my PhD. Additionally, my husband paid for most of his college education with student loans.

Have you only taken out government loans, or do you have private student loans?

Sylvie Response- I have only taken out government loans but my husband had a private loan, financed directly through the school, when he completed his associates degree in drafting and design.

Have you done a consolidation loan?

Sylvie Response- Yes, all of my past loans from student teaching and my masters degree are consolidated. I plan to consolidate the remainder of my post-graduate loans once I finish my coursework and am no longer deferring payments. My husband has also consolidated all of his loans. We inquired upon consolidating our loans together but were advised against this.

What advice do you have for people who are thinking about taking applying for student lending for the first time?

Sylvie Response- Stick to federally funded loans as I have heard that private student lending is often a scam. I have found that loan consolidation has been helpful in streamlining payments as well as reducing some interest rates. If you have to accrue debt through student lending, I personally feel that investing in your education is priceless. Although I will be paying off student loans for a long time, I also have a career that I am passionate about and am able to contribute to the well-being of others.