PERKS

• You’ll be able to go to college.
• They’re easy to get (no credit check!).
• There are specialty loans for specific schools and degree programs in Arkansas.*
• They help you build credit.
• You can focus on school; you won’t have to work at the same time.
• You can use loan money for tuition, books, school supplies, room and board, laptops, etc.
• You have a long time to pay them off.
• In certain cases, student loans can be forgiven (like  for Arkansas teachers!).
• Sometimes payments can be deferred; you can apply to take a break from monthly payments.

PITFALLS

• You start your adult life with debt.
• If you don’t graduate, you still have to pay it off.
• Compounding interest makes these loans very expensive in the long run.
• You have to choose a degree carefully to ensure you’ll earn enough to pay the debt off.
• Your first paychecks will cover your monthly student loan payment. (You’ll have to wait to enjoy some luxuries for the time being.)
• If you don’t make your payments on time, you can ruin your credit score.
• Even if loan payments are deferred, the compounding interest continues to accrue monthly.

*Visit the Arkansas Student Loan Authority's website for more on local specialty loans (asla.info/home)