As a new college student, there are many things to keep regarding your student loan debt. Here are some dos and don’ts for new college students regarding their student loans. First, research which loan type is best for you and make sure you understand the terms.
There are many different types of student loans, so be sure to choose the one that will work best for you based on your unique circumstances. Finally, don’t forget to always keep up with your repayments.
Student loans are not free money, so make sure you’re putting enough away each month to cover the interest and principal payments. If you can’t afford the repayments, talk to your lender about consolidation or a lower interest rate.
What To Do and What Not To Do With Your Student Loan
Student loans can be a huge financial burden, but there are some things you should do to make the most of your loan and avoid needless expenses. Here are six tips for smart student loan management:
- Track your debt payments and stay on top of your obligations. This will help you better manage your budget and keep tabs on where your money is going.
- Don’t overspend on unnecessary items to make up for the shortfall in monthly payments. This will only add to your overall debt load and may not cover the month’s interest.
- Ensure you’re taking advantage of all available loan forgiveness programs, such as Public Service Loan Forgiveness or Teacher Loan Forgiveness. These can drastically reduce your debt, making student loan repayment much more manageable.
- Use a budgeting app to help you stay on track and avoid overspending. For example, the StepIt app is a great resource for managing your student loan payments, helping you stick to your budget and stay on top of your obligations.
Dos
When you are a first-time college student, there are a few things you need to know about student loans. Here are some dos and don’ts for new college students when it comes to student loans:
- Don’t overspend on your student loans. Instead, make sure that you can pay back your debt with manageable monthly payments. This will help keep your overall cost of borrowing down.
- Don’t take out too much money in student loan debt. It’s better to spread out your payments over time to not deal with large lump payments or interest charges.
- Keep copies of all your loan documents. This includes the promissory note, the original loan agreement, and subsequent correspondence between you and the lender (including late fees and missed payments).
Don’ts:
If you’re a new college student, here are some dos and don’ts to follow when it comes to student loans:
- Do research your loan options thoroughly before choosing one. Many different types of loans are available, with varying rates of interest and eligibility requirements.
- Ensure you always have up-to-date information about your loan status and repayment schedule. Student loan providers are notorious for making big changes without warning, so keep up with all your paperwork!
- Don’t spend more than you can afford to pay back your student loans. This is especially important if you’re planning on using your loan money to cover living expenses while in school.
- Always make a copy of all of your loan documents and carry them with you in an emergency.
