1. Failing to exhaust free money first. Loans are not free money. They must be repaid, usually with interest. Every dollar borrowed will cost about two dollars by the time the debt is repaid in full. Focus instead on gift aid, such as grants and scholarships. Then, consider money that is earned, such as student employment, education awards for volunteer service, employer tuition assistance, and military student aid. Also, save for college in advance, since it is cheaper to save than to borrow. If debt is unavoidable, consider using a short-term tuition installment plan instead of long-term debt.
2. Taking on too much debt. Students (and parents) should not borrow more than they can afford to repay in a reasonable amount of time. Don’t treat loan limits as targets. Instead, keep debt in sync with income after graduation. Total student loan debt at graduation should be less than the student’s expected annual starting salary, and, ideally, a lot less. If total debt is less than annual income, the borrower will be able to repay his or her loans in ten years or less.
3. Borrowing private student loans instead of federal. Exhaust eligibility for federal student aid, including federal loans, before turning to private student loans. Always borrow federal first, because federal student loans are cheaper, more available and have better repayment terms and conditions than private student loans. Federal student loans offer flexible deferment and forbearance options, income-based repayment and public service loan forgiveness.
4. Misunderstanding the difference between fixed and variable interest rates. Fixed interest rates remain unchanged for the life of the loan. Variable interest rates may change periodically, perhaps, even monthly. Even if the interest rate on a variable-rate loan is initially lower than the interest rate on a fixed-rate loan, the variable-rate loan may ultimately be more expensive if the interest rate increases significantly over the life of the loan.
Variable interest rates are expressed as the sum of a variable-rate index, such as the Prime Lending Rate or LIBOR index, and a margin. Don’t ignore the index. A variable-rate loan with an interest rate of Prime + 6% is not a 6% fixed-rate loan. The actual interest rate may be much higher than 6%.
5. Cosigning a loan without understanding the consequences. Cosigning a loan may help the borrower qualify for a loan and may reduce the interest rate. But, a cosigner is also a co-borrower, equally obligated to repay the debt. The cosigned loan will be reported on the credit history of both the borrower and cosigner. This may affect the cosigner’s ability to qualify for other debt, especially if the borrower is late with a payment or defaults on the loan. The lender can seek repayment from the cosigner at any time, and many will do so the first time the borrower is late with a payment. Although the lender may offer cosigner release as an option, cosigners often complain that it is difficult to qualify for cosigner release.
Arizona Summit Receives WRBLSA Award Arizona Summit was recently awarded the 2016 Black Student Law Association Chapter Award at the
Western Region Black Law Students Association (WRBLSA)'s 48th annual convention held during the
first week of January in San Diego.
Charlotte School of Law AAMPLE®
If a lower LSAT score is hurting your chances of getting into law school, Charlotte School of
Law (CSL) offers the Alternative Admissions Model Program for Legal Education (AAMPLE), a
seven-week online class that helps prospective students prove they are able to handle a
demanding law school curriculum.
Florida Coastal Law's Practitioner Clinics Florida Coastal Law's Practitioner Clinic is an innovative course offering students a chance
to work closely on pro bono cases with a practicing lawyer. Students are often invited to
work on these cases in the practitioner's office off campus, and the Clinics are offered as
two credits with an evening classroom component.
Center for Professional Development Arizona Summit's Center for Professional Development (CPD) is a full-service career counseling
and resource center that supports and assists students in all stages of the career planning
process, while helping employers fill their semester, summer, and permanent hiring needs.
Charlotte Law Compliance Certificate Program
Students with or without a legal background can pursue a career in the rapidly growing
field of compliance and ethics. Charlotte Law is one of the few law schools in the U.S.
offering a Corporate Compliance Certificate Programentirely online. It's an 18-week
platform that prepares students for the Compliance Certification Board exam.
Florida Coastal Law Offers LLM & Certificate in Logistics & Transportation Florida Coastal Law is the first law school in the U.S. to offer an onlineLL.M. Degree or
Certificate in Logistics & Transportation. Students in the 24-credit LL.M. or 12-credit
Certificate program gain expertise in global logistics and transportation law through
cutting-edge courses taught by attorneys and industry professionals online.
