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4 big student loan mistakes experts say to avoid

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Cute gold colored piggy bank wearing a graduation cap and standing next to a roll of dollars. Education cost theme
These big student loan mistakes could be quite costly, so it’s important to avoid them if possible.

CATHERINE LANE/Getty Images


The school year is quickly approaching, and if you or your student is heading off to college in the fall, you’re probably spending much of this summer looking at your finances. How will you pay for tuition? What about housing, supplies, and books? 

Both federal and private student loans can help. But for new students, they can also feel pretty complicated.

Want to make sure your student loan journey is successful? Be sure to avoid these mistakes many people make when borrowing money for school.

Find out how affordable the right private student loans can be now.

4 big student loan mistakes experts say to avoid

Here are the four mistakes experts say not to make.

Not maxing out your federal loans first

Federal student loans should always be your first line of defense. Not only do they come with lower interest rates than private student loans, but they also have more repayment options, which can help if you’re in a financial bind later on.

“Always start with federal student loans in the student’s name first,” says Angela Colatriano, chief marketing officer at College Ave. “If you still have a gap to cover, that’s when private student loans could come into play.”

Federal loans also don’t charge interest while you’re in school, and they can be easier to qualify for, as they’re not based on credit. 

“Federal loans do not require a credit check or a co-signer, which makes them more accessible to a broader range of students — including those who may not have established credit histories,” says Joel Bauman, senior vice president for enrollment management at Duquesne University. 

Explore your top private student loan options online now.

Not thinking ahead 

Thinking only in the here and now is a big mistake, too, experts say. For one, you need to consider how your loans could impact your — or your family’s — future finances.

“Getting a student loan, private or federal, will impact the family’s credit and their ability to do other credit-related activities, such as obtaining or refinancing a mortgage,” says Jack Wang, a wealth and financial aid advisor at Innovative Advisory Group. “Especially in the case of federal loans, since there’s really no income underwriting. Families with low incomes can still borrow huge sums and then not be able to repay the loan when the student graduates.”

That’s another future problem to think about: overborrowing. If you borrow more than you really need, it could spell financial problems — or even a loan default — down the line.

“Borrowing more than necessary, especially for non-essential or lifestyle expenses, can lead to significant financial strain after graduation,” Bauman says. 

Waiting too long to make payments

You won’t need to make payments on federal loans while in school, and many private student loans offer grace periods, too. But this doesn’t mean you should take them — at least if you don’t absolutely have to. 

If you can add a little to your monthly payment — or even make occasional extra payments toward your loan after graduation (like when you get your tax refund or another windfall), it can make a big difference.

“When borrowers can pay extra on their loans, they should do so,” says Stacey MacPhetres, senior director of education finance at Bright Horizons. 

Just make sure the lender applies it to your principal balance rather than holding it until your next payment date, she says. 

“Paying toward principal can reduce the overall time and repayment and total interest paid on the life of the loan,” says MacPhetres.

Skipping payments when you’re in a financial bind

If you find yourself in financial trouble, it can be tempting to skip your student loan payments — but that can hurt your credit and seriously limit your future financial options.

Your best bet is to be open and communicate with your lender as soon as you think you may have trouble making payments.

“Immediately reach out to your loan servicer to see what options are available,” Colatriano says. “Don’t ignore the issue.”

Some lenders will offer options like deferment or forbearance, or with federal loans, you can get on an income-based repayment plan. These let you base your monthly payment on how much income you’re bringing in.

The bottom line

Both federal and private student loans can help fund your education, but it’s important to understand how these work and what they mean for your finances later on. Exhaust your federal options first, and then, if you need additional funds, turn to private student loans, which can fill in any gaps. Be sure to compare lenders, too, as requirements, rates, fees, repayment terms and other factors can vary widely from one company to the next.



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Robert Towne, legendary Hollywood screenwriter of “Chinatown,” dies at 89

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Robert Towne, the Oscar-winning screenplay writer of “Shampoo,” “The Last Detail” and other acclaimed films whose work on “Chinatown” became a model of the art form and helped define the jaded allure of his native Los Angeles, has died. He was 89.

Towne “passed away peacefully surrounded by his loving family” Monday at his home in Los Angeles, his publicist Carri McClure, told CBS News in a statement. She did not provide a cause of death.

In an industry which gave birth to rueful jokes about the writer’s status, Towne for a time held prestige comparable to the actors and directors he worked with. Through his friendships with two of the biggest stars of the 1960s and ’70s, Warren Beatty and Jack Nicholson, he wrote or co-wrote some of the signature films of an era when artists held an unusual level of creative control. The rare “auteur” among screen writers, Towne managed to bring a highly personal and influential vision of Los Angeles onto the screen.

Writer Robert Towne
Writer Robert Towne in audience during the 36th AFI Life Achievement Award tribute to Warren Beatty held at the Kodak Theatre on June 12, 2008 in Hollywood, California. 

Alberto E. Rodriguez/Getty Images for AFI


“It’s a city that’s so illusory,” Towne told The Associated Press in a 2006 interview. “It’s the westernmost west of America. It’s a sort of place of last resort. It’s a place where, in a word, people go to make their dreams come true. And they’re forever disappointed.”

Recognizable around Hollywood for his high forehead and full beard, Towne won an Academy Award for “Chinatown” and was nominated three other times, for “The Last Detail,” “Shampoo” and “Greystoke.” In 1997, he received a lifetime achievement award from the Writers Guild of America.

“His life, like the characters he created, was incisive, iconoclastic and entirely (original),” said “Shampoo” actor Lee Grant on X.

Towne was born Robert Bertram Schwartz in Los Angeles and moved to San Pedro after his father’s business, a dress shop, closed down because of the Great Depression. His father changed the family name to Towne.

Towne’s success came after a long stretch of working in television, including “The Man from U.N.C.L.E” and “The Lloyd Bridges Show,” and on low-budget movies for “B” producer Roger Corman. In a classic show business story, he owed his breakthrough in part to his psychiatrist, through whom he met Beatty, a fellow patient. As Beatty worked on “Bonnie and Clyde,” he brought in Towne for revisions of the Robert Benton-David Newman script and had him on the set while the movie was filmed in Texas.

Towne’s contributions were uncredited for “Bonnie and Clyde,” the landmark crime film released in 1967, and for years he was a favorite ghost writer. He helped out on “The Godfather,” “The Parallax View” and “Heaven Can Wait” among others and referred to himself as a “relief pitcher who could come in for an inning, not pitch the whole game.” But Towne was credited by name for Nicholson’s macho “The Last Detail” and Beatty’s sex comedy “Shampoo” and was immortalized by “Chinatown,” the 1974 thriller set during the Great Depression.

“Chinatown” was directed by Roman Polanski and starred Nicholson as J.J. “Jake” Gittes, a private detective asked to follow the husband of Evelyn Mulwray (played by Faye Dunaway). The husband is chief engineer of the Los Angeles Department of Water and Power and Gittes finds himself caught in a chaotic spiral of corruption and violence, embodied by Evelyn’s ruthless father, Noah Cross (John Huston).

Influenced by the fiction of Raymond Chandler, Towne resurrected the menace and mood of a classic Los Angeles film noir, but cast Gittes’ labyrinthine odyssey across a grander and more insidious portrait of Southern California. Clues accumulate into a timeless detective tale, and lead helplessly to tragedy, summed up by one of the most repeated lines in movie history, words of grim fatalism a devastated Gittes receives from his partner Lawrence Walsh (Joe Mantell): “Forget it, Jake, it’s Chinatown.”

The back story of “Chinatown” has itself become a kind of detective story, explored in producer Robert Evans’ memoir, “The Kid Stays in the Picture”; in Peter Biskind’s “East Riders, Raging Bulls,” a history of 1960s-1970s Hollywood, and in Sam Wasson’s “The Big Goodbye,” dedicated entirely to “Chinatown.” In “The Big Goodbye,” published in 2020, Wasson alleged that Towne was helped extensively by a ghost writer — former college roommate Edward Taylor. According to “The Big Goodbye,” for which Towne declined to be interviewed, Taylor did not ask for credit on the film because his “friendship with Robert” mattered more.

The studios assumed more power after the mid-1970s and Towne’s standing declined. His own efforts at directing, including “Personal Best” and “Tequila Sunrise,” had mixed results. “The Two Jakes,” the long-awaited sequel to “Chinatown,” was a commercial and critical disappointment when released in 1990 and led to a temporary estrangement between Towne and Nicholson.

Around the same time, he agreed to work on a movie far removed from the art-house aspirations of the ’70s, the Don Simpson-Jerry Bruckheimer production “Days of Thunder,” starring Tom Cruise as a race car driver and Robert Duvall as his crew chief. The 1990 movie was famously over budget and mostly panned, although its admirers include Quentin Tarantino and countless racing fans. And Towne’s script popularized an expression used by Duvall after Cruise complains another car slammed him: “He didn’t slam into you, he didn’t bump you, he didn’t nudge you. He rubbed you.

“And rubbin,′ son, is racin.'”

Towne later worked with Cruise on “The Firm” and the first two “Mission: Impossible” movies. His most recent film was “Ask the Dust,” a Los Angeles story he wrote and directed that came out in 2006. Towne was married twice, the second time to Luisa Gaule, and had two children. His brother, Roger Towne, also wrote screenplays, his credits include “The Natural.”



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Analyzing impact of Supreme Court’s Trump immunity decision

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It’s been a day since the Supreme Court ruled that former President Donald Trump has immunity from criminal prosecution for official acts taken in office but that he is not protected from prosecution for unofficial acts. CBS News legal analyst Jessica Levinson joins to unpack the decision.

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