Understanding your student loans

Updated: Feb. 23, 2022 at 7:00 AM EST
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RICHMOND, Va. (WWBT) - Nearly $30,000 dollars, that’s the average amount of debt carried by members of the class of 2020, according to the most recent data.

There’s usually a grace period after a student graduates college before their first loan payments are due. This is why it’s so important to have a conversation with your son or daughter about how student loans work. Show them how to log into the portal and how to make payments.

Cherry Dale a financial coach with the Virginia Credit Union says you also want to make sure they understand the consequences of loan default and collections.

“Students are not aware that once they graduate that student loan if they have a student loan will follow them the rest of their life even if they declare bankruptcy, it’s very difficult to pull a student loan default from your credit report,” said Dale.

They need to understand that the federal government can garnish their wages and take their tax returns if they don’t pay. If your child is about to go to college and hasn’t signed up for any loans yet, teach them the ins and outs of credit. So, they understand how much they’ll owe and especially how long it will take to pay it all off.

Copyright 2022 WWBT. All rights reserved.

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