What to know before borrowing $ for college

One trillion dollars — it’s more than Americans have in credit card debt, and according to the Wall Street Journal — it’s also the national student debt.

“Student loans are definitely a big part of my life,” COCC student Cammie Patterson said Monday.

Financial expert Jay Kolar says students who think they can borrow now and not pay it back later are sorely mistaken.

“They’re going to try and garnish your wages, they’re going to try and get your tax refunds if any — they’re going to call you, they’re going to hound you,” said Kolar.

Kolar told me the IOU for your education won’t be forgiven even under the worst financial circumstances.

“They’re not going to go away — a lot of student loans won’t even go away in bankruptcy,” said Kolar.

So payment options are key if you’re thinking about borrowing, or already have.

“Even if you’re going into school and you know that you’re going into a profession that’s going to take you some time to establish yourself, look for the type of loans that will offer an income-based repayment plan, where it might be a percentage of your income,” said Kolar.

Other options include the standard 10-year repayment plan and a graduated repayment plan. The graduated plan knocks off 30 percent of the standard payment for the first two years, then raises it every two years to get the debt cleared in a decade.

COCC financial aid advisor Tyler Hayes says the best plan is to borrow as little as possible.

“We want them to look at that free money first,” he said. “So any kind of grant, any kind of scholarship, we definitely want them to look at that first, and take that so they don’t have to repay it.”,

After a six-month grace period, students have to start making those payments. Hayes says reducing the amount you owe later starts now, by taking a good hard look at your wants vs. needs.

“Live like a college student now, so you don’t have to live like one later,” said Hayes.

Kolar wanted to remind parents their children can take out student loans for school, but they can’t take out a loan for retirement.