Students have to start repaying loans six months after they graduate or quit school. Jones says many students forget or ignore that provision of the agreement. Students are overwhelmed when they finish school and realize that they have an enormous student loan debt to pay. This is why students should only borrow the amount they need, says student loan officer Sharon Stepney. I believe some students abuse student loans.
Most students think short term when it comes to student loans.
They often do not realize that these loans must be repaid and if they are not, serious consequences can follow, says Stepney. Stepney says students who default on their loans are reported to the credit bureau, and the notation can remain on their credit report for years. Since it's on their record it could inhibit them getting a loan for a home, car or other purchase. Although a student has six months after they finish school to start repaying their student loan, they can start paying on their loan as soon as they like, says Stepney. Also, to avoid a student loan debt, there are other alternatives for paying for school.