Student Loans Now More Important Than Ever

Applications for student loans are up nationwide and also here at Ozarks universities.

And in these tough times, more and more people are struggling with the debt they accumulated by getting an education.

An education is considered the second-highest investment of a lifetime, right up there after buying a home.

It's an investment many struggle with long after they leave campus.

All kinds of websites and companies offer advice on how to pay up, and we asked the experts the best way to do that.

Students see dollar signs everywhere they go on campus, and many say they constantly ask, "How am I going to pay for all this?"

"It's a hassle to have to go through it every year," MSU graduate student Julie Lamer says. "I really hate it."

It's Jackie Lewis' job to help students navigate the alphabet soup of student loans.

"The questions we get are mostly how much can they borrow," Lewis says. "They don't realize that those limits are set by the federal government."

Lewis says applications this year are up as more students realize they're eligible for aid, and her office has to keep up with the times.

"Avoiding scams," Lewis says. "This is something we direct students in making sure they avoid any kind of scam."

Lewis says she also advises students that it's the "Free" Federal Application for Student Aid, so any company or website that charges you to fill out the FAFSA is a scam.

And whether you already have your diploma or are still buying books, chances are those loans are somewhere in the back of your mind.

"Probably around $60,000," MSU graduate student Cody Carpenter estimates he will owe after he finishes school. "Does that scare you?" we asked. "Yeah, it does actually," Carpenter said.

"Most people will probably not even think about that loan from the time they graduate to the time they make that first payment," Mike Cherry of Consumer Credit Counseling Services says.

Cherry recommends checking with lenders every 60 to 90 days to see if consolidating your loans is a smart move.

"I have consolidated some of my loans already, my undergraduate loans, so hopefully I'll get a better APR," Lamer says.

Lamer says she did her research beforehand, but Cherry says consolidation is not for everyone.

"There's no need to consolidate debt unless you get a better rate," he says. "Unless you can get a better payment, there's no need to consolidate it just to have one loan."

And Lewis says even though waiting in line for help is a pain, don't turn down professional advice.

"We are right there with those students," Lewis says. "We've been through this program ourselves. We've been students."

Cherry recommends checking with the federal government or the Better Business Bureau to make sure a lender is reputable.

He says, unfortunately, the homework continues once you leave campus, but this is very necessary homework, especially because of junk mail and the internet.

Lewis says students have come to her with stories about how websites are charging more than $80 to fill out the FAFSA, and she says that is one big scam.

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