How to Manage a Student Loan?

Answer 1

A student loan is a convenient way to pay for your expenses when you attend college. Student loans are available to anyone who demonstrates a financial need for tuition, books, and housing throughout their college career.

Only Use What You Need

When you are offered a student loan, you will be offered the largest amount that you are allowed to borrow each semester. Just because the money is offered, though, it does not mean that you have to accept all of it. Look at your true school expenses and decide how much money you think you will need in order to be comfortable during the school year. You will have the option to choose exactly how much money you are willing to borrow at the beginning of the semester. If you only take the amount of money that you will really need, you will be able to keep your debt down and have a better chance of repaying the loans in a shorter period of time.

Understand the Difference Between Subsidized and Unsubsidized

There are two types of student loans available in the United States. Subsidized loans are offered to students who demonstrate a severe financial need. A subsidized loan allows the student to borrow money for school without having to pay interest on the loan. Unsubsidized loans are offered to students who qualify for loan assistance but have been deemed more able to repay the loan. Unsubsidized loans carry an interest rate that is generally lower than the typical interest charged for bank loans.

Create a Repayment Plan Before you Graduate

Student loans must begin to be paid back as early as 6 months after a student graduates or stops attending school full time. It is a good idea to be prepared to begin making those payments so that you will not be surprised when you have to add them to your budget within the first year of graduation. Your financial aid office will be able to help you figure out what your average monthly payments would be based on the amount of debt that you have accrued so far and the amount that you expect to add to that before graduation.