Borrow smart
- Before borrowing, explore all options of gift aid ("free money") possible, such as from family members, religious groups, civic organizations. Search for scholarships online for free at www.CollegeAnswer.com.
- Borrow only what you need.
- Your student loan terms may offer ways to save money. Look for loan credits for on-time repayment of federal student loans and interest rate and fee options on private student loans. Nellie Mae provides all these money-saving borrower benefits and more. Get the details at our Loan Center!
- Attend entrance and exit counseling sessions at your college and save all handouts.
- Keep a centralized record of the types and amounts of student loans you borrow and save all documents, such as promissory notes. You can record this information online at Nellie Mae's Debt Management EDvisor.
- Calculate what your monthly student loan payment will be, based on different levels of borrowing and repayment plans. Determine a level of debt that will keep your monthly student loan payment at or below 12% of your monthly net salary—and keep it there.
- Research starting salaries for the occupations you are considering. The career office at your school should have this information, and you can find national average salaries online at Debt Management EDvisor.
Start a budget
- At the beginning of each month, figure out what your resources will be for the next few weeks. Will you have money left over from financial aid? Will you have income from a part-time job? Will you receive money from your parents? Set aside a standard amount to use for school supplies and recreation and put the rest into a savings account. To help crunch the numbers, use this budget calculator worksheet as a guide and meet with a financial aid officer if you need more help.
- Minimize credit card use and make more than the required minimum monthly payment on time. Better yet, pay balances off in full every month. Use credit cards only for emergencies, not for entertainment or spending money.
- Work during summers, school breaks, or part time during school to keep your debt level low.
- Stick with basic campus services; avoid expensive options for cable TV, telephone service, and meal plans.
- If possible, use public transportation. Many schools provide free shuttle bus service. You may be eligible for a student discount on public transportation. Greyhound and Amtrak offer 15% discounts when you hold the Student Advantage Card.
- If you don't have a low-cost cell phone package, consider using email, IMs, or "snail mail."
- Schedule midweek and midday flights in advance. A Saturday-night stay can reduce your fare.
- Carpool home with other students to cut costs. Bring your own snacks.
- Consider living at home and commuting, if that is an option.
FAFSA tips
- File your FAFSA each year between January 1 and March 1.
- Be prepared to e-file by first printing a pre-application worksheet and gathering all the documents you will need—including those from your parents.
- Use estimates! If you or your parents won't be filing taxes until after March 1, don't wait to complete the FAFSA. Use the information from last year's tax returns as an estimate and file the FAFSA on time. You can update it with tax-return numbers later.
- Using your PIN, returning students (and their parents) can file a Renewal FAFSA on the Web and sign electronically. This is the fastest option since the Renewal FAFSA asks you to provide only information that has changed since the previous year. Plus, signing electronically eliminates mailing time.
- If you need to complete your FAFSA in steps (your portion, then your parents' portion), you can save and retrieve the application for up to 45 days after starting it.
Final reminders
- Make your student loan payments on time when you are in repayment.
- Keep a simple lifestyle.
- Consider an area's cost of living when you relocate after graduation.
- Maintain a good credit rating in college to ensure future borrowing ability, such as for a car, home, or graduate school.
- Check your credit report annually for free by visiting AnnualCreditReport.com (sponsored by the three credit reporting agencies).
More info
- A credit card can go from harmless to hazardous if you don't follow these strategies for using credit cards wisely.
- Heading to grad school? Check out these tips for graduate students!
