Borrowing and Budgeting Advice
“The Borrower's Dozen”
Financing your education requires a collaboration of yourself, your family, your school and your lender(s). Answering the following 13 questions should give you the information you'll need to make well-informed choices about how to finance your education and to make the most of your educational investment.
Questions to Ask Before You Borrow
1. What should I be doing now to prepare for meeting the cost of my education?
2. What eligibility requirements must I meet in order to obtain financing for my degree?
3. What financing options/programs are available to me at the school(s) I am considering attending?
4. What is the purpose of financial aid, and what do I need to know about the process?
5. How do I apply for financial assistance, and what applications are needed?
6. When should I apply for financial assistance, and what are the application deadlines?
7. Will my parents and/or spouse be expected to provide any of their financial information and/or contribute to the cost of my education?
8. What is done with the information I provide?
9. What should I know about the assistance I am offered, such as grants, loans, Work-Study?
10. What can I do to reduce the amount I have to borrow, yet still attend the school of my choice?
11. What can I do, once I arrive on campus, to minimize how much I borrow?
12. What options will I have for working while obtaining my degree?
13. What impact will the loan(s) I borrow have on me after I complete my education?
13 Good Habits for Achieving your Dreams
For most people, bad habits are hard to break, and it is difficult to get into good habits, particularly when it comes to money. This listing includes financial habits that should allow you to succeed at achieving your goals and help you to be responsible in the financing of your education.
1. Identify your financial goals.
2. Make well-informed choices about how you use your resources.
3. Don't live a lifestyle you can't afford. Live below your means while in school so that you can afford to live like a professional once you graduate.
4. Budget your money just as carefully as your time; get on a monthly budget and stick to it.
5. Save a little each month (even if only $5), and plan for your financial future.
6. Keep accurate, well-organized records of your financial activities.
7. Establish and maintain a strong credit history; review your credit report annually.
8. Borrow the minimum amount you need.
9. Pay the interest on unsubsidized loans when it accrues, if possible.
10. Be a well-informed borrower. Not all loans are alike; know the differences and borrow wisely.
11. Pay your credit card balance in full each month. Charge only what you know you can repay when the bill arrives.
12. Limit the number of credit cards and available credit you have.
13. Be realistic about how much money you will earn once you graduate–don't count on any immediate financial windfalls.
Printed with permission from Access Group Inc.
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