While a college education is an invaluable asset in a personâÄôs life, it is no secret that it is also an expensive one that can leave a student with large amounts of debt for many years to come.
Even though the majority of student loans do not need to be repaid until six months after graduation, these loans should not simply be applied for and then swept under the rug and ignored until it is time to pay up. Students need to be prepared to pay off student loans effectively and on time, which means learning as much as possible about loans and personal finances during oneâÄôs undergraduate years.
The first thing for each student to find out is exactly how much money he or she needs to pay for college and how much he or she is eligible to receive. Often, the University of Minnesota offers more loans than a student needs. While more (seemingly) free money is enticing for any college student, it is smartest to only borrow enough to pay expenses.
When you do borrow, keep all loan documents in a safe location, as they will be needed upon repayment. Losing these will become more of a hassle than itâÄôs worth.
There are several resources on campus to assist in becoming educated on topics such as student loans and personal finances. Family Social Science 3101, Personal and Family Finances, teaches students how to handle their money now and in the future, including an in-depth lesson on managing student loans.
Additionally, financial aid counselors are available at OneStop to assist students with similar issues. Students should not wait to educate themselves about personal finances âÄî if one is prepared now, there will be no surprises after graduation.