Monthly payments and budgeting
Last week we provided a link to find out what your total student loan debt and payment would be. Did you check it out? If not, here it is again: National Student Loan Data System
Know what you'll owe
We encourage you to find out what your payment would be if you borrowed each year until you complete your education. What do you think your loan balance will be? What is the monthly payment on the standard plan?
We aren't pointing this information out to scare you! Understanding your future payment might help you see the time spent applying for scholarships and grants is time well spent.
This knowledge could lead you to take a smaller loan and work a few extra hours. Our goal is for you not to borrow more than you can afford.
Create a budget
Knowing your future payment allows you to budget now. Do you have a budget?
Having a plan for your money allows you to use it in a way that serves you best. Budgeting simply means knowing what money is coming in and where it goes. It also includes knowing future expenses that may cause you to save more money or cut other costs so you don’t struggle later.
A budget may be a simple spreadsheet with income and monthly expenses. Some people use an envelope system or an online tool to pull in all expenses. Check with your bank or credit union to see if they offer a budgeting tool.
If you have questions, please contact me at kim.murphy@phoenix.edu. I look forward to hearing from you!
