Student loans have potential for long-term financial issues
Attorney General issues Consumer Alert
Attorney General’s Office LITTLE ROCK – Starting school at a new college or university can be intimidating, especially when factoring in the immense expense and the potential need to take out student loans. There are some key items that every student should know before agreeing to a loan that often takes decades to repay.
“A student loan should be a short-time obligation to give students an opportunity to be successful,” said Attorney General Leslie Rutledge. “Unfortunately, these loans are too often carried over for decades and hold our best and brightest back from making investments or taking risks as entrepreneurs.”
Attorney General Rutledge has provided the following tips for students considering taking out a student loan:
• Make sure you understand your loan. Before taking out a loan, make sure you understand the repayment terms and other obligations of the loan, interest rates and how they will be applied to the loan, and where to find your balance and payment schedule after you graduate. For federal loans, visit the National Student Loan Data System (nslds.ed.gov).
• Take advantage of the grace period. Oftentimes, there is a grace period after you graduate or stop attending a college or university. It is important to know how long the grace period is and whether interest will be charged during the grace period. Grace periods allow you to get your “feet on the ground” while making a plan to repay the loan.
• Know your re-payment options. Every loan is different and some offer the chance to change payment options based on your income rather than a set monthly amount. In some cases, if you are going through a financial hardship, there is the ability to temporarily defer payments.
• Be wary of loan consolidation and refinance offers.
Many companies offer loan refinance options, but may not provide the promised service or might provide services that consumers can access for no cost.
Consumers should learn all details about any loan refinance offer before enrolling in one.
• Check your credit report to see all of your education debts, including federal and private student loans.
For more information, the Arkansas Student Loan Authority can be contacted at 800-443-6030 or call the Arkansas Attorney General’s Office at (800) 482-8982 or visit ArkansasAG. gov or facebook.com/ AGLeslieRutledge.
About Attorney General Leslie Rutledge Leslie Carol Rutledge is the 56th Attorney General of Arkansas. Since taking office, she has significantly increased the number of arrests and convictions against online predators who exploit children and con artists who steal taxpayer money through Social Security Disability and Medicaid fraud. Further, she has held Rutledge Roundtable meetings and Mobile Office hours in every county of the State each year, fdand launched a Military and Veterans Initiative. She has led efforts to roll back government regulations that hurt job creators, fight the opioid epidemic, teach internet safety, combat domestic violence and make the office the top law firm for Arkansans. Rutledge serves as Chairwoman of the National Association of Attorneys General Southern Region and re-established and cochairs the National Association of Attorneys General Committee on Agriculture.
