College is expensive and most students are forced to take out student loans. The Michigan Department of Treasury is alerting parents and students to seek the information they need to make informed decisions when it comes to borrowing money for school. Americans owe about $1.7 trillion in student loans.
Robin Lott, director of the Office of Postsecondary Financial Planning for the Treasury, said, “More and more, students and families have to cover a considerable amount of their higher education costs. When student borrowers become financially empowered, they can better understand how to manage and leverage the financial aid they receive.”
The Treasury’s MI Student Aid Team has some tips for making the best of the student loan process. They say to complete the FAFSA, or Free Application for Federal Student Aid, to maximize options.
Not every student understands that loans need to be repaid, with interest. Loans are not “free money”. Students and parents should check the amount of interest being offered before accepting it. Shop around and only accept the amount you need.
Finally, students should make an account with studentaid.gov to keep track of their loans.
Reporting for WGRT – Jennie McClelland
