This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Student Debt Diary: 5 Things I Wish I'd Known Before Borrowing


Deferment is a dirty word. Lenders make it seem easy to wait (or defer) paying back your loans, but be's a choice that has a cost. Deferring your loans (or having them put into forbearance) puts you more deeply in debt, extending the time it will take you to repay your loan. Part of the reason I was unemployed so long is that I was insistent on working in my field, at any level. It would have been wiser to take a part or full-time job to pay the bills and keep paying those loans. If you find yourself in a similar position, look into income-based repayment, which calculates payment as a percentage of your monthly income.


Just how long loan repayment takes. So, it's nine years after the fact, and I've honestly barely made a dent in my loans. I accepted the "gift" of deferment right after graduation from benevolent lenders when I was fortunate to be working and earning an amount equal to the total of my loan--which means I definitely should have been making payments and living more frugally. I made no payments while unemployed and very minimal payments the past three years when I was earning very little working at a non-profit. I'm back on track career-wise, but it will still take me another 10 years to pay off my full debt, meaning I'll be well into my 40s by the time I'm debt-free.

Borrowing money for higher education isn't the end of the world, but as it can limit your options in the ensuing years, prepare yourself before you take the plunge! Do your research, pay what you can out of pocket and explore as many grants and scholarships as you can. A little planning goes a long way in making the experience less daunting.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $123.90 -0.43%
FB $81.47 -0.91%
GOOG $543.54 -0.81%
TSLA $188.34 -0.23%
YHOO $44.16 -0.61%


DOW 17,686.71 -89.41 -0.50%
S&P 500 2,059.01 -8.88 -0.43%
NASDAQ 4,866.4050 -34.48 -0.70%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs