Should You Take Out a Student Loan for an Associate’s Degree?
March 2, 2022

Should You Take Out a Student Loan for an Associate’s Degree?

Getting a college degree of any type means you will be spending a considerable amount of money to obtain your diploma. While an associate’s degree will not cost you as much as most higher-level degrees, the average associate’s degree costs about $3,570 at public institutions and $14,587 at private institutions.

The debt relief lawyers at McCarthy Law know that for many people, going to college often means maintaining a student loan to cover the cost of tuition. While this is common amongst students pursuing higher education, it is questionable whether it is necessary for an associate’s degree.

Student Loans May be a Good Option to Pay for an Associate’s

College is expensive. That is no secret, and whether your associate’s degree is your end goal or the beginning of your bachelor’s degree, paying for this degree can take a big chunk out of your savings account. Taking out a student loan is a common and effective way for many students to pay for their education. There is no reason why someone should not take out a loan to pay for their degree, assuming they understand the terms of your loan agreement and the implications of having a student loan.

When taking out a student loan for an associate’s degree, do not take out more than you need and choose a loan with the lowest possible interest rates. Doing this will ensure that when it comes time to pay the loan back, you might avoid falling into debt.

What Type of Student Loans Are Available?

Luckily, there are two different categories of student loans available to help pay tuition or other education expenses.

Federal Student Loans

When shopping for loans, you should always check out federal loans first. If you qualify to receive federal student loans, they offer many benefits, such as fixed interest rates that tend to be lower than private loans. Other benefits include:

  • Alternative repayment plans
  • Ability to pause payments
  • No cosigner required

Federal student loans are offered in both subsidized or unsubsidized loans.

Private Loans

If you apply for federal student loans and are not eligible, private loans are another option to help pay for your associate’s degree. Be advised that not all private lenders offer options for associate’s degrees, so you may need to do some shopping around. As you are looking for a loan, be aware of the following factors:

  • Interest rates
  • Fees
  • Eligibility requirements
  • Whether you need a cosigner
  • Repayment terms 

How to Get Student Loans for Your Associate’s Degree

As you prepare to take out a loan, you will need to apply to see what you are eligible for. The first step in getting a loan should be to apply for federal loans through FAFSA. There are specific periods of time when you have to have your FAFSA application completed, so be sure to stay on top of those deadlines. If you still need loan coverage after applying through FAFSA, each private lender will have an application process of their own to assess your eligibility.

Get Out of Student Debt with Arizona Debt Settlement Lawyers

Taking out a student loan can be a great way to pay for your associate’s degree, but you need to be careful when assessing the interest rates and fees. If you find yourself in a situation where you cannot repay the debt you owe your lender, get help from the experienced debt settlement lawyers at McCarthy Law.

With the lowest lawyers fees in the industry and personalized care, McCarthy Law can help you get back on the path to financial success. For a free consultation, contact us here or call (855) 976-5777.

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