Surviving the Student Loan Jungle - Smart Borrowing
by Mark Krings, National Student Loan Program
If new college students had a penny for every well-intentioned piece of advice they receive, they'd be rich from hearing "It's a jungle out there!" As your students consider how to finance college, you can help them swing into smart borrowing habits with the following survival gear.
Caution students to borrow only what they need. Once they determine they need a student loan, counsel students about the impact of their borrowing decision and help them understand their future student loan repayment obligation.
Help students estimate how much a loan will cost. They can estimate their future monthly loan payment by using calculators on the Mapping Your Future and EducationQuestTM Foundation college planning center websites co-sponsored by NSLP at www.mapping-your-future.org/features/loancalc.htm and www.educationquest.org. Both sites also have a budget calculator to help students determine how a monthly student loan payment will fit into their future earnings and expenses.
Encourage student loan borrowers to ask questions. If they are unclear about any loan repayment requirements, remind students to ask questions before they accept a loan so they avoid future problems.
These survival tips can help your students borrow wisely and understand the impact of their borrowing decision.
Submitted by: Teresa Boldt, NSLP Corporate Promotions Coordinator
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