It makes no sense to me to send a young person to college in order that he might have stronger earning power throughout his working life, only to have him emerge with a slave’s load of debt. So in general my advice about taking loans for college is, “Don’t!”  However, my daughter’s experience last semester has pointed out one exeception I’d be willing to recommend.

Some of my daughter’s financial aid award came in the form of work-study.  She would need to work all semester in order to earn the full amount, which was payable as she worked. Here’s the rub: tuition and fees deadlines hit well before the end of the semester.  If she paid late, she’d also owe hefty late fees, not to mention that she couldn’t register for the next semester classes until the full tuition was paid.

So she accepted a federal, no-payment-no-interest until graduation loan in the amount we expected she’d be able to earn during the semester.  The idea is that she would pay off the loan as she worked instead of directly paying the school. No late fees, no registration penalties and no long-term debt.

_______________________________________________________________

Try the new Countdown to College e-book for a comprehensive strategy for earning scholarships and a glowing entre into your chosen post-high school destination.