Monthly payments and budgeting
Financial Literacy Month: Week 3
Last week, we provided some resources; for you to track and monitor your student debt and calculate your expected future monthly repayment amount. Did you check them out?
It can be a helpful exercise for you to project your total expected debt load — and expected monthly repayment amounts — by considering how much you’re likely to have borrowed at the completion of your program. What would your expected monthly payment be on the standard plan?
Knowing your projected loan repayment on the standard plan is a good place to start, but it’s not the only option available. Exploring all your repayment options helps ensure that your loan payments are manageable.
Projecting your future repayment amount might encourage you to borrow smarter. You may discover that the time spent applying for scholarships and grants is time well spent if it results in a smaller debt amount, or that working a few extra hours to reduce your amount borrowed might be worth considering. Either way, our goal is for you not to borrow more than you can afford to repay.
Create a budget
Once you understand your loans, budgeting is a good step to ensure you stay on track financially. Budgeting is a key part of making sure you have the resources available to reach your financial goals.
The process of creating a budget can be challenging, and sometimes it’s hard to know where to start. Remember, having a plan for your money allows you to use it in a way that serves you best.
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