assignment wk5 - Federal student loans. 3. What is one...

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1. What are some future consequences of borrowing to much debt? Borrowing too much debt exhausts your resources through interest payments. The price of your purchase increases when you have to make interest payments sometimes doubles in price; so therefore the cost of your purchase is higher than you can imagine. Often you are still making payments after the item you purchased has decreased in value, has become damaged or broken, or become outdated. 2. How do you plan on paying your loan? I have already started paying off my student loan as soon as I received my first statement. I am even paying more than the minimum payment. I do not want to wait for the grace period to end, so I do not incur interest, and I do not want to default on my loan. It is not good to default for many reasons. However, defaulting on my loan will only delay any tax refunds that I am able to receive. Also, prevent me from getting any further
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Unformatted text preview: Federal student loans. 3. What is one positive thing you can do to keep your student loans under control? When it comes to paying for your college education, procuring debt or student loans to pay for the tuition cannot be avoided for many students. In preparation for successfully repaying your student loan many things must be taken into consideration. To get an edge up you should plan to repay the loan before you even sign the first promissory note. Most students do not consider repaying their student loan, until after they have graduated from college and land their first job. Again, one positive thing to keep your student loan under control is to start paying immediately after your first bill, so you do not incur finance charges and you have little or no loan to repay after graduation....
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This note was uploaded on 11/21/2011 for the course PERSONAL F 101 taught by Professor Agnew during the Spring '10 term at University of Phoenix.

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