Try this before taking on massive student loan debt

The financial aspect of going to college is a stressful and daunting part of the college enrollment process.

Most families can’t afford to send their child to college using money out of pocket, making student loans a necessity. These loans help pay for your education, and then the student pays it back over the years once the degree is earned. Unfortunately, this process causes many students to go into debt while trying to pay back their loans.

Student loan debt is now the second highest form of consumer debt after mortgages.

BBB offers advice on financing your college education:

• Fill out the Free Application for Federal Student Aid (FAFSA) to find out how much financial aid is available to you. This amount varies student to student.

• Speak with a counselor specializing in financial aid. This is especially important if this if your first time going through the student loan process.

• Find out your Expected Family Contribution (EFC), which projects the amount the family or student is expected to pay.

• Explore grants and scholarships.

• Look for government loans first, then private loans. Federal and State loans usually offer more relaxed re-payment timeframes and are generally lower in cost.

• Check to see how long the lender has been in business and don’t give out personal information to unfamiliar parties.

• Ask about cheaper options for service members and veterans if it applies to you.

• Explore work study programs. These allow you to earn money to offset some of your education costs if it’s available at your school and you are eligible.

• Make sure you can pay back your loan. Don’t take on a loan unless you know you are in a position or will be in a position to pay it back.

• Ask important questions about the terms of your loan. (When do I start paying the loan back? What is my monthly loan amount? When does my loan start collecting interest?)

Be wary of Student Loan Forgiveness scams. These scammers contact you by phone, social media or e-mail and tell you they have the authority to erase student loan debt. They often reference a new government program/policy that allows this. They ask for an upfront payment, but they just take the money and disappear. According to the U.S. Department of Education, if you took out federal student loans to pay for college you never have to pay to get help managing your student loan debt, the Department of Education offers assistance for free.

It’s important to understand what you’re getting into regarding student loans or you could be vulnerable to scams.

John North is president of the Dayton Better Business Bureau.

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