DeKALB | Some financial aid officials contend that it may not be in students’ best interest to pay off their student loans as quickly as possible in order to rake in the benefits of the loan.

“[Students should] always pay high interest debt first,” Pam Hector, an advisor at Student Financial Aid, said. “Paying off a student loan at the maximum interest rate of 8.35 percent makes no sense if you have credit card balances at 19 or 23 percent interest.”

Hector said the interest on student loans often can be tax deductible after they have been paid off and can also be used to help establish a good credit rating. She recommends checking with a tax professional concerning any tax breaks from student loans.

Pam Kniskern, a senior communications major said she was surprised to find out the interest on her student loans might be tax deductible.

Hector said during entrance counseling sessions, lenders advise that students “live like students now so they don’t have to live like students after graduation,” she said. “[Students should} ABC, Always Borrow Conservatively.”

Mike Murphy, a freshman history major, said he is currently taking out student loans and is already concerned about building a good credit rating.

“Right now I have three primary loans to pay for school,” Murphy said. “After I move from the dorms into an apartment, I’ll only need one loan because I can pay for food and housing out of my pocket rather than with a loan.”

Hector recommends that students save three months worth of living expenses in case of emergency before they receive their first student loan bill.

Kniskern said she was surprised when the first bill for her loan came this fall. Kniskern said, “It was one of those things I was planning on taking care of after graduation.”

Student loans are not without drawbacks.

“[Loans] have to be repaid and oftentimes for 120 or 360 months,” Hector said. “Students with uncertain employment futures are most at risk for default.”

If a student does encounter rough economic times, Hector said a student should contact their lender before payment is due.

“Many may qualify for an economic hardship deferment or at least a forbearance,” Hector said. “The lenders NIU suggests will work with the borrower to avoid delinquency and default, thus protecting the borrower’s credit score.”