Minimize borrowingBy : Kim Murphy | April 14, 2014
April is National Financial Literacy month- a month devoted to helping all Americans learn more about healthy financial habits. At University of Phoenix we are committed to responsible student loan borrowing and that is why our focus for this month will be on student loans and developing healthy habits to manage student loans.
Many college students will borrow federal student loans to pay tuition and related college expenses. Federal loans go into repayment six months after you leave school, but planning for repayment should start when you first borrow. At today’s interest rates, for every $1,000 you borrow, your standard monthly payment will be approximately $10. Borrow only what you need in student loans to keep that future payment more manageable. If you borrow additional funds of $3,000 each year of a four year academic program, that could be another $12,000 borrowed- which will become an extra $120 per month in repayment.
Try to find non-loan sources of aid, such as scholarships. You can learn more about scholarships here.
Talk with your finance advisor about options to borrow less.