By: Brittany Frost
• Before you even take out a student loan, apply for as many scholarships and grants as possible. This alone can save you (and your mom) a lot of money. Visit your school’s website or www.studentaid.ed.gov to view federal grants and scholarships.
• If you still need a loan, research loan types and repayment plans to make an informed decision. In general, federal student loans can have more repayment options and lower interest rates than private student loans. For more information on federal student loans and repayment plans as well as budgeting resources and calculators, visit www.studentaid.ed.gov.
• Budget and plan ahead. For more help budgeting for your student loans, contact Christian Credit Counselors at www.christiancreditcounselors.org.
• Use other free resources. According to the recent article Baylor University Partners with iGrad to Implement Online Financial Literacy Education Initiative by Jo-Carolyn Goode, Baylor will team up with iGrad, a financial literacy leader, to offer interactive workshops about budgets, scholarships, student loans, applying for jobs to help students pay for school, and a seminar for seniors to discuss loan payment options after graduation through iGrad’s financial literacy platform. For more information, visit www.igrad.com.
• When repaying your loan, consider an automatic payment deduction to save money on your payment. Also, put as much money as you can toward your payments. Each extra dollar paid toward your student loan payment each month can help overall.
• Since it is tax season, remember that student loan interest is tax-deductible and there are credits and deductions for parents and students. According to the College Board in Danielle Douglas-Gabriel’s article in the Washington Post entitled Paying for college? Have student loans? Here’s what you need to know before filing your taxes, the average family saved about $1,460 in education credits and deductions in 2013. To research various options of increasing your savings through tax credits and deductions such as the American Opportunity Tax Credit and the Student Loan Interest Deduction, refer to www.irs.gov. See how much you can save!
By using these tips and managing your student loans responsibly, you will not only save money but you will provide valuable peace of mind for you and your mother. That’s something that you won’t be able to buy at the Hallmark store!