Smart Borrower Center
Tools to help you borrow better
Going to college can be one of the best things you can do for your future. College means making new friends, living independently and focusing your studies. The opportunities are boundless, but for many people there is a huge financial hurdle to overcome. Here are some tips for staying out of debt while you are a student.
Don’t spend it if you don’t have it.
If college is your first time living away from your parents, you may feel like you have free reign to spend as much money as you like. This can be dangerous, especially if you make your purchases on a credit card. The cost of credit comes in the form of interest rates (and, sometimes, other fees). If you don’t have enough money to pay off your balance, your purchases can end up costing considerably more than their ticket prices. Aside from student loans, making purchases on credit cards and not being able to pay off the balance is one of the easiest ways to graduate into debt. Make a commitment to yourself to only make purchases on credit that you can afford to pay off. That way, when you finish your degree, you can start your career with a clean slate instead of having to dig yourself out of debt.
Know your options.
With college costs rising, you may feel like your only option for getting your degree is to get student loans. There are good student loan programs out there, but before you sign the dotted line, you should see what else is available. Look into scholarships and work study programs to finance, or at least lessen the burden of, college costs. Talk to your high school or college guidance counselor so you know what resources are available to you so you can avoid or lessen debt from college expenses.
If you decide to get student loans while earning your degree, it is important that you go with a loan program you can manage. Shop around for the best rates and terms, and be sure you make your payments on time, every time. Also, depending on where you get your student loans, you may be able to start paying the interest while you are still in school. This can be a manageable way to start paying off your debt early, and it can reduce how much you have to pay once you have graduated.