How the transfer can impact student loan debt

University transfers may have fallen by 5% overall in 2020, but new information from Student Loan Hero shows that a handful of states have seen large increases in transfers.

Utah schools saw a 15% increase in transfers, the highest rate in the country. Schools in New Hampshire and Arizona followed closely behind.

Historically, black colleges have also seen an increase in the number of transfer students, and experts believe national protests against racial injustice may have played a role.

“Talking about race, making it a bigger part of this education conversation has only made some students across the country aware that they may have more options in college than they have. may have considered it before, “said Andrew Pentis, senior writer at Student. Loan hero.

Transferring schools can also help students reduce their debt, especially if the new school has cheaper tuition or if the student can get a scholarship.

Pentis says it’s important to know that students can repay a federal loan if they transfer before the four-month mark.

It also encourages students to make payments to the school on their loans, although they are not required to repay them until they graduate.

“It’s really important to make payments at school on your loans. And when I say that, I think a lot of families are scared – you know, it’s not something we can afford,” Pentis said. “But really, put it in the context of every little bit that helps. If you skip a dinner or a new item of clothing every month – say $ 25, $ 50 – and throw that money on your student loans, instead. of those that aren’t. -a much-needed expenses, you can make sure that the interest on your loans will not accumulate and be capitalized so that when you graduate hopefully you will get a balance similar to the one you originally borrowed and not something that is really bloated and got out of control. “

Pentis added that school payments can reduce monthly payments after students graduate.

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