Bob Jain & Outlining Four Student Loan Mistakes

By Bob Oliver

To put it simply, student loans can place a burden on anyone. This is especially true for younger men and women, since it's likely that they are the ones who know the least about financial stability. While this doesn't necessarily mean that they are incapable of saving money or making frugal decisions, it's likely that they can benefit from greater levels of information. If you would like to know about the common student loan mistakes to avoid, here is a list of 4 that Bob Jain can tell you about.

1. MarketWatch posted an article on the matter and one of the first mistakes listed was being under the impression that loans absolutely must be attained. Around 60% of all students, according to the Chronicle of Higher Education, borrow money but what does it say about the other 40% or so that do not? It is easy to assume that they have been able to pay off their tuition's in other ways. Perhaps there is a more inexpensive campus that they decided to go to with more affordable rates.

2. Bob Jain can also attest to the idea of taking everything that is given in the way of student loans. It's important to keep in mind that just because you are given a certain amount of money for the sake of paying off school does not necessarily mean that you have to use all of it. If you are able to cover costs and still have money left over, chances are that you might use it for other purposes. In any event, you still have to pay that money back and authorities like Jain will tell you to take only what's needed.

3. Some students may not take the initiative when it comes to keeping track of debt. From what I have seen, students struggle with staying organized and the fact that they have other needs and goals to look to means that time isn't the most flexible asset. In order to better understand your level of debt and when to focus on it, try to keep physical records on hand. If you are able to do this, chances are that referencing your older records, for one reason or another, will not be as taxing.

4. There seems to be a bit of confusion, amongst students, in regards to what both private and federal loans entail. MarketWatch focused on the matter and it seems like federal loans, in general, are more relaxed in terms of flexibility and their generally lower interest rates do not hurt matters. Does this necessarily mean that private loans should be ignored? Seeing as how there are students who prefer these, it's easy to see that there are perks. It's just a matter of determining if they are worth the investment or not.

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