College students are exposed to new responsibilities on a regular basis, including legal responsibility in certain areas. Everything from signing apartment leases to student loans have legal consequences. “Now more than ever, it’s important that young adults understand their new legal obligations and responsibilities when they are on their own for the first time,” said Charley Moore, Founder and Chairman of Rocket Lawyer.
Rocket Lawyer has even come up with some tips for students starting out. Rocket Lawyer’s top five tips for “acing” Legal 101, include:
1. Lease liability: For many young people, college is the first time they sign a rental agreement. Whether you’re on the lease alone or signing with roommates - if your name is on it, you are responsible for the monthly payment. If one of your roommates falls short, you are still responsible for picking up the slack. That’s why it’s especially important to read the document carefully before you sign and become legally liable. Some important items to understand in your lease include the amount of rent and when it’s due, the amount of the security deposit, penalties for late payment of rent, pet policies and fees if applicable, and whether the landlord or the tenant is responsible for utility payments.
2. Understand your utilities: Make sure you have a clear picture of what you and your roommates can afford before signing up for all of the movie channels. Gas, electric, phone and cable bills are listed under one name, even if there are several people splitting the cost. If you’re the one on the agreement, you are responsible for payment every month. Negative records such as late payments and collection accounts can remain on credit reports for 7 years, which can affect you long after graduation.
3. Be careful of credit cards: According to a 2009 study by Sallie Mae, 84 percent of the student population overall have credit cards. While it can be tempting to sign up for a credit card to get an enticing promotional item, it’s critical that young people take the time to read and understand the legal commitment they are entering into with the credit card company. Read the interest rate charges and payment agreement carefully.
4. Save for student loans: According to recent figures from the Federal Reserve, consumers now owe more on their student loans than their credit cards. Students and parents should always take extra time to understand loan commitments before entering into the agreement. Understand how you are allowed to spend the loan money, the interest rates, the length of the term, and the repayment options (including how long you will need to pay off the debt and the amount of the monthly repayments). It’s a commitment you and your parents may be paying off for many years to come.
5. Before you borrow from family or friends: Many students today may be borrowing money from a loved one or friend in order to pay for student loans, housing, books, etc. Before accepting the offer, understand the terms of the loan. You need to know when and how you are expected to pay the money back and always put it in writing.
These are just a handful of great tips for keeping it legal while in school. Make sure you are willing to help your student get a handle on these types of things before heading to college.
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