Knowledge comes with a price. As a student, passing your exams are not the only thing you need to worry about. The ever-increasing price of tuition fees is equally worrying to both parents and students.

Most countries offer government subsidies and loans to help cover the costs. However, education debt is still an issue for many.

Here are some measures and considerations you can take to responsibly plan your way out of student debt:

Before you accept a student loan…

1. Ask questions and follow instructions

Before you finalise your choice on which student loan to take, make sure you’ve researched it enough to make an informed decision. Don’t be afraid to contact a financial aid officer to get answers.

Also, make sure you know the rules and requirements for applying for student loans. Funds can be limited, so be sure to apply by the deadline.

2. Be clear on what you’re signing

To make sure you understand a loan’s terms, conditions and repayment requirements, ask your financial aid officer the following questions:

• How much will this loan cost in total?
• What will my monthly payment be?
• Is the interest rate fixed or variable?
• Can I get a lower interest rate?
• What fees do I have to pay?

3. Note private-loan credit requirements

Private loans require credit checks. If you do not have a credit history, you will need a co-signer with a good credit history and credit score.

Typically, the better the co-signer’s credit history and score, the better the interest rate and other terms will be.

While you’re still studying…

1. Kickstart your in-college budget

• Make two lists. Your first list should include all your sources of income, and the second list should include all your college costs.

Sources of income may include employment, grants, scholarships, work-study income, college savings plans, contributions from relatives or friends, and more.

College costs may include tuition, books, fees, supplies, equipment, housing, food, and more.

• Calculate your total income and your total expenses
• Compare your total income with your total expenses. If your total income and available savings are less than your total college costs, review your list of expenses, and check for ways to reduce your spending and to eliminate unnecessary expenses.
• Now, compare your total income against your expenses again. If your total income and resources are still less than what you need to pay for your college costs, consider taking out a federal student loan.

2. Track your borrowing

It’s important to keep track of each loan you receive so that you are aware of how much you’ll need to pay each month and in total for your loans as you progress through college.

Don’t wait until you graduate or stop attending school to review your student debt.

If you wait, you may find you have borrowed more than you can afford to repay or have multiple types of loans that require separate monthly payments.

3. Consider working part-time

With a more flexible schedule as compared to a secondary education, most tertiary students work part-time. The possibilities are endless. From working as a freelance writer, waitress or even working ad-hoc for events.

You won’t need to borrow as much if you have a part-time job to cover some of your expenses. You may even check out if your university offers work-study programmes.

4. Consider making interest payments while in college

You can start making payments on any need-based loans while you’re in college. You don’t have to pay a lot, and this will allow you to reduce the total amount of student debt you’ll have to repay.

This article first appeared in thenewsavvy.com

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