Keep all those documents

Right now you are signing a lot of documents—loan papers and such. They seem like annoying formalities that just don’t mean that much. Trust me. They do mean that much. You need to read them carefully and get someone to explain them to you if you do not understand what you are signing. Take your time. Don’t let anyone stampede you.

Ask your parents if they have a safe deposit box at their bank, and if they do, the loan documents belong there. At the very least get one of those accordion file folders, and keep your copy of everything you sign.

If you are uncertain about what all that paperwork means, you would certainly be wise to get a second professional opinion. (The first place I would ask would be my bank—unless they are the ones loaning me the money!)

By the way, you will also want to keep your textbook receipts from the college bookstore so you can return the book if you bought the wrong one or your schedule changes.

Four final thoughts

1. Document everything. If you change your major or you drop below a full-time course load or you transfer to another college or you decide to take a year off—all these could affect the way your loans work, and you need good documentation of everything. Do not depend upon your memory. Do not depend upon word-of-mouth. Get everything in writing and save it in some safe place.
2. Loan companies do not have your best interests at heart. They are all about getting money from you. That’s all. If someone makes a promise to you on the phone, get a printed copy and study it before you sign anything. (One of my friends took the bait when his loan provider offered to consolidate his educational loans and rewrite them. The result was that he owed $1000 per month interest. It took a lot of work to get him out of that one.)
3. As I write this, the Federal government, which has a key role in overseeing your loan, is changing things a LOT. We do not know what the rules will be in the future, but if you have legal documentation of your rights and obligations, you have more hope of navigating that mess.
4. Student loan information is always needed at tax time. You really do need all those papers.