It seems pretty straightforward. You have to pay for school. How you do that, however, can make all the difference in the world. When it comes to student loans there are some pretty common pitfalls people fall into. Save yourself some time and money by avoiding these common mistakes.
1. Not Knowing What You Want
You know you want to go to school; you’re just not certain what type of degree to pursue. Stop and take a step back. Each year that you spend wading through the sea of educational uncertainty, is costing you money.
Approach your education the same way you would buying a house. Decide what you want, then select the student loan that best suits your needs. That way you’re not spinning your wheels – and spinning through money.
2. Do You Even Need A Loan?
It’s crazy how many people fall into this common pitfall. Have you explored the Free Application For Federal Student Aid (FAFSA)? Do you know the FAFSA deadlines? Have you looked into scholarships and grants and all the other ways you can pay for your education?
Don’t sell yourself short. You might think your family makes too much money for a federal grant, or that you don’t have good enough grades to qualify, or that there is simply no other option.
You might be wrong. The US department of education has a terrific blog for students exploring FAFSA.
3. Easy Money
No matter what you might think, student loans are not free money. They don’t just drop out of the sky when you need one, and trust me, you’ll pay for it … eventually.
Don’t fall into the common pitfall of spending your student loan on things you don’t need: like that new Xbox, or a new puppy, or a night out on the town. Use your student loan for its true purpose – your education.
4. Don’t Be Uneducated About Your Loans
Make sure you do your research and explore all your options. Most importantly of all, know what your payments will be each month.
These days there are lots of handy online calculators to help you figure out exactly how much you’ll be paying for your student loan, leaving no excuse for saying you didn’t know.
5. Not Keeping Track Of How Much You’ve Borrowed
A little here, a little there: It all adds up. And let’s be honest, it’s easy to get into the mindset that you have all the time in the world to repay your student loans. Well, don’t be fooled into that line of thinking.
The Internet it littered with tales of people who’ve come out of college hundreds of thousands of dollars in debt because of their student loans. Keep careful tabs on what you’re borrowing. You can use several simple tools like this database to help you keep track of your student aid.
Getting an education shouldn’t bury you in debt. While it may be very tempting to “treat” yourself after a particularly grueling week of exams, it doesn’t make sense when that means dipping into your student loan money. Avoid the common pitfalls mentioned above and emerge with both a college degree, and a degree in common sense.
For more information on Federal student aid, visit https://studentaid.ed.gov/.