Every year thousands of new students take out student loans, not knowing exactly what they are getting into. Many first-time college students will turn to the FAFSA or Free Application for Federal Student Aid as they prepare to go to college. While the FAFSA is a crucial step in the process of gaining aid for college there is five things that every college bound student should know.

First and foremost, surprisingly is that the aid comes with a pretty hefty price tag attached. Many students are not getting the memo that financial aid in the form of student loans is a debt that will have to be paid back. Perhaps this has to do with all the news regarding loan forgiveness programs.

According to The Post Star, Maureen Reilly, the financial aid director at SUNY Adirondack, stated that almost daily former students contact her upset that their loans are going into repayment. Stressing that loans require repayment is extremely important. While most schools require entrance, and exit counselling there are still huge gaps when it comes to understanding how this debt will affect their futures.

Second is explaining what will happen when the loans come due. In some cases, the loans are subsidized by the federal government and that means that the interest hasn’t been accruing on them. However, not all student loans are subsidized, and the unsubsidized ones have been accruing interest. While it is not as bad as the interest rate on a credit card it can still equal a large amount of debt for young adults entering the workforce where there is a limited amount of jobs available.

Third involves the notion of loan forgiveness programs. While there are some programs out there, the options for utilizing them are limited, and there are talks among the current administration to do away with or limit loan forgiveness programs. Now is an appropriate time to explain to students that if they take out a loan they should intend to pay back the full amount plus interest.

Students shouldn’t count on a loan forgiveness program to get them out of the debt they are accruing. Instead, a better option would be to look at what other ways to pay for college are available.

This brings us to number four. While college is expensive, loans aren’t the only ways that college students pay for their schooling. There are grants and scholarships available. These options are a wonderful way for students to get an education without accruing a lot of debt early on.

Another option is the work colleges. Currently, there are seven work colleges that allow students to work for their education rather than paying for it. These schools require students to do jobs around campus in exchange for an education and little to no debt. Finally, there is the option to work off campus for private companies and pay for classes one at a time.

Some students like this option best, while it makes going to school a little bit more difficult and can mean taking longer to get the degree it affords students the ability to get a degree without going into debt.

Finally, the fifth thing that students need to know before taking out loans for college is probably the most important one. It is tied into the fact that student loans go into repayment, and if they aren’t paid it can totally wreck a students’ future. Essentially the federal government can haunt you for the rest of your life if you go into default on your student loans.

After 270 days of not paying, they can begin to garnish your wages. Self-proclaimed student loan expert Heather Jarvis stated that defaulting on student loans is one of the worst credit mistakes a person can make. It pretty much tells the rest of the world that the borrower isn’t willing to pay the federal government back, and if they aren’t afraid of the federal government chances are they aren’t going to pay their other bills.

Defaulting on student loans can make it impossible to buy a house, car, or even get some jobs that are tied to a credit score. However, that is not the worst of it. While there is not a debtors prison, the federal government can sue, garnish wages, and take tax refunds all in an effort to get the money back.

No matter what if students are interested in using financial aid this coming school year they need to file the FAFSA as soon as possible. The current school year FAFSA opens on October 1^st, for students looking to start school in August 2018 the FAFSA is already available, but some schools have deadlines tied into getting financial aid for the upcoming year.

Making an appointment to talk to a financial aid officer can help students better prepare and help them to decide what options are best for their schooling needs.