Loans
Understanding Loans: Types, Pitfalls & Repayment
Loans can be helpful tools when managed wisely—but they can also create long-term financial stress if misunderstood. This course introduces young adults to the essentials of borrowing, helping them recognize the different types of loans available, the risks of debt, and the strategies for paying loans back responsibly.
Participants will learn how to:
Identify different types of loans – Student loans, auto loans, personal loans, credit card debt, and mortgages.
Understand loan terms – Breaking down interest rates, principal, monthly payments, repayment timelines, and what these numbers really mean.
Spot potential pitfalls – Hidden fees, high interest rates, predatory lending, and the dangers of only making minimum payments.
Recognize the impact of loans on credit – How borrowing responsibly can build credit, and how late or missed payments can damage it.
Understand co-signing – What it means to co-sign for a friend or family member, the legal and financial responsibility it creates, and how missed payments can affect your credit and financial future.
Explore repayment strategies – Learning about grace periods, consolidating loans, budgeting for repayment, and prioritizing high-interest debt.
Make smart borrowing decisions – Understanding when it makes sense to take a loan, when to avoid it, and how to weigh need vs. risk.
By the end of the course, participants will feel confident in their ability to evaluate loan offers, avoid common traps, and create repayment plans that fit their budgets. They will also understand the serious commitment of co-signing for someone else’s loan, and how to protect themselves from unintended financial consequences.
