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Create a budget
A budget is the most important tool you can have while you are in school. It
is a framework for "living within your means." In order to create a
realistic budget, you must first assess your current lifestyle and spending
habits. You must also recognize that, more than likely, these patterns will
drastically change when you become a full-time student.
You should start by itemizing your basic
monthly living expenses, such as rent, utilities, food,
clothing, laundry, transportation, entertainment, and so on. A monthly budget is
preferable to semester or yearly budget because it allows you
to assess both your short-term and long-term expenses.
The next step is to itemize your financial resources, such as parental/family
support, savings, part-time work income, and so on. Now you should be able to
compare your projected
monthly expenses to your projected monthly income, thus assessing your need (if
any) for student loans to bridge the difference.
Only borrow what you need!
Unsubsidized
student loans begin to accrue interest at the time of disbursement, so you can
expect to repay more than the amount you borrow. Use the charts below to
estimate how much you will owe upon graduation.
Monitor your debts
It is critical to consistently monitor your loan indebtedness while in school
so as to have a realistic understanding of your financial obligations once you
are out of school. You may check your loan history on NOVASIS.
To help manage your federal student loans, we recommend that you visit the
National Student Loan Data System (NSLDS) Student Access website (www.nslds.ed.gov)
today. NSLDS provides a central database for Federal Student Aid and allows
students access to view information from schools, guaranty agencies, the Direct
Loan program, as we as other federal programs; which is a valuable tool in
managing your federal student loan information.
You will need your Federal Student Aid PIN to access the website; you have
used the PIN when electronically signing your loans or when completing your
FAFSA. You can request a duplicate PIN be sent to you at
www.pin.ed.gov.
The following tools will help you calculate your monthly loan payments. Note
that they are only recommended as resources and
should not be used to yield true repayment figures.
Avoid using credit cards
Credit cards are tempting, particularly for students on limited budgets.
However, use them responsibly. A negative credit history will jeopardize your ability to secure
a mortgage, a
car loan, or other lines of credit in the future. Consider these tips:
- Reserve credit card use for emergencies only
- Limit yourself to one card
- Avoid "impulse" purchases
- Pay your balance each month so as to avoid interest charges
Maintain a file
It is highly recommended that you create and maintain a file of all financial
paperwork. This file should include
copies of all applications, promissory notes, lender correspondence, disclosure
statements, and any other important documents.
The debt management information on this page is provided solely as a guideline and is
not intended to serve as professional financial advising.
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