Introduction: The Truth About Loans

Hello all! Welcome to The Debt-Free College Student!

You must be here for a reason. Whether you're fresh out of high school or going back to college after a long hiatus, Debt-Free can help you get through college without the burden of student loans.

Some may question, why not take out a loan or two? By the time you earn your degree, you'll have a great job to pay the loans off, right? While I'm all about being optimistic, here's the truth about loans:

• Unlike scholarships, grants, and financial aid, student loans must be paid back. With interest.
• Interest rates for loans, whether they are subsidized or unsubsidized, can run anywhere from 3.4% to 6.8%.
• Private student loan institutions require a FICO score, or credit score of at least 630 for approval.
• Planning on graduate school? Studies show graduate students borrow even more money than undergrads. On average, the debt for a master's degree is $25,000. For a doctoral degree, $50,000, and almost $80,000 for a professional degree.
• During the 2007-08 academic year, the average amount of undergraduate student debt was $23,186. 
• The amount of interest paid on a loan for $23,186 at 6.8% interest over a 10-year payment plan? $8,832.79 total. That's more than one-third of the amount borrowed!

Loan Balance: $23,186.00

Interest Rate: 6.80%

Loan Term: 10 years

Minimum Payment: $50.00

Monthly Payment: $266.83

Number of Payments: 120

Cumulative Payments: $32,018.79

Interest Paid: $8,832.79

I know these figures can seem daunting, but they are not meant to turn you away from the idea of college. The worth of a degree goes far beyond the price, and there are countless ways to graduate without thousands of dollars in loans. You can prepare and get through college on your own terms!

Here are some of the money-saving topics I'll be introducing over the course of this blog:

How to start and maintain a savings account

How to get your first job

When and where to scrimp, save, and sacrifice

Living at home vs. Moving out

Going to Community College

Transferring to a 4-year University

How to receive Federal and State financial aid

How to apply for (and win) scholarships

How to fill out financial aid forms

How to save on everything, including textbooks and supplies

I hope you'll stick around and find out what it takes to be a Debt-Free College Student!