Be a Wise Borrower

Financing your education with loans is a serious undertaking—every $10,000 borrowed will cost you about $115 a month, every month.

Take ownership of your finances. Become a wise student loan borrower by borrowing only the money you need, always remembering loans must be repaid, and knowing your options.

Borrow Only the Money You Need

Before borrowing, ask yourself:

  • Could I get the same education at a less expensive school?
  • Should I attend a more affordable community college and then transfer to another school?
  • Have I investigated all scholarship and award options?
  • Have I learned all I can about the different types of student loans?
  • Should I commute to school to save money?
  • Should I work part time during the year?
  • What luxuries can I do without to maximize my money?
  • Have I learned about managing my student loan debt?
  • When selecting a major, did I consider my possible future salary?

Always Remember Loans Must Be Repaid

Taking out an education loan means you promise to repay the original amount you borrowed (the principal) and what you are charged to use the money (interest).

Remember, you must repay your loans whether or not you finish your educational program.

Know Your Options

There are many different types of student loans. Before you accept any loan, know what you are eligible for—and understand the difference between them.

Contact your school’s financial aid office or American Student Assistance® (ASA) with any questions.

10 Tips for Financial Success

  1. Start a student loan folder. Have one place to keep all of your loan information (e.g., MPN copies, documents).
  2. Beware of living in the future. Remember that decisions you make today will affect your lifestyle tomorrow.
  3. Avoid relying on credit cards. If you use credit cards, pay your balance on time, in full, and as agreed.
  4. Keep track of monthly expenses. Know what your finances looks like as a whole.
  5. Open your mail. Go over the information you receive from your servicers (the companies you send payments to), school, and ASA.
  6. Repay your student loans. Make payments on time, even if you don’t receive a repayment coupon booklet.
  7. Notify your servicers of any major changes. When you move, let your servicer know. This also goes for changes to your name, phone number, enrollment status, and ability to repay.
  8. Pay yourself first. Become a saver and put money aside for emergencies.
  9. Get creative. Look at your circumstances and generate opportunity. Earn money with a skill or talent or sell items on eBay.
  10. Use resources. Help is out there. Don’t be afraid to ask questions.