Student debt management

Many students often don’t think about the money they have loaned until it’s time to pay them back. Leaving this financial obligation unsupervised can lead to a burden to which may be hard to put an end. But this does not have to happen to you if you plan ahead and respect some simple rules. Whether it’s credit card debt or student loan debt, following these simple steps can keep your debt manageable and under control.

Federal Stafford and Perkins Loans offer the lowest interest available. If you are awarded this loans, it is only natural to go with them. Other federal loans like Federal Parent and Graduate Plus should be an option before considering private loan.

If you should decide for a reason or another to apply for a private student loan, be prepared to come with a good credit co-signer. Financial security brought by the co-signer may help you get the loan approved and possibly get you a lower rate. Co-signer is significantly important for those without an established credit history or a not-so-good credit. Low interest rate translates in lower monthly payments and can make it easier to repay your loan.

Money can be saved by taking summer courses at a less expensive school, in those cases where credits will transfer. Be sure to check this requirement first with your academic advisor.
New college text books can be expensive. You should take in consideration taking advantage of great discounts when you buy them used. The internet can also be a priceless resource. Many e-shops compete for offering the best price on books.

Credit cards should be used only for necessities or for emergencies. Make sure you pay them off every month to avoid interest charges.

Getting a part-time job can make a huge difference for your financial life. The money you earn can be used to pay for an upcoming semester, to start repaying your loan or pay for unexpected events rather than charging them. Ultimately, it’s money you don’t have to borrow anymore.
If you fear a job can be distracting and make it harder to get good grades, start looking for jobs on campus, work-study or not. This can complement your class and maybe even allow you to study at work.

Starting to repay your loans during school can make a big difference. Monthly payments, even if they’re only interest payments, can help you cut down on the total amount of interest to be repaid.

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