Do's and Don'ts for Spending your Student Loan
There are things you should use your student loan for and things you shouldn 't. For example, using your load to pay for a lofty apartment is maybe not in your best financial interest.
Colleges generally apply student federal loans toward tuition, room and board. Any money leftover is sent to the borrower by check, direct deposit or cash. Private loans are similarly disbursed but some borrowers may receive all of the money up front in a bank account. This can be challenging for a college student who is not used to having much money in his bank account ‐ he suddenly feels rich!
It may be tempting to use some of that money to buy a new fall wardrobe or to live off campus in a fancy studio apartment ‐ but be leery. When you graduate in a few years, you will thank yourself if you are more responsible, practicing self‐control as you put your student loan dollars to better (and more responsible) use.
Here are a couple tips on how to better manage and spend your student loans.
Although in some situations, your tuition is paid first then you receive the difference, there is a chance you will receive all of the money yourself. Budget your money so you are certain that the things that are intended to be paid for with your loans are paid for (tuition, books and some living expenses).
When it comes to buying books, start off buying what is essential rather than everything on each professor 's recommended list of materials. Visit class and ‐or talk to former students before buying other additional materials. Also look for used textbooks to save money.
Try to live below your student loan means rather than trying to spend up to the amount you have received. If you opt to live off campus or want to eat something outside of the school meal plan, be careful and budget before spending.
For help with Student Loans, contact us today.