1. Borrowing More Than You Need
It’s tempting to accept the full loan amount offered, but this leads to unnecessary debt. Stick to what you actually need for tuition and living.
2. Not Understanding Loan Terms
Signing without reading the fine print is dangerous. Know your interest rate, repayment schedule, and whether your loan is subsidized or unsubsidized.
3. Ignoring Interest During School
Some loans accrue interest immediately. If you don’t pay at least the interest during school, it capitalizes—making your debt snowball.
4. Delaying Repayment Too Long
Taking full advantage of deferment or grace periods can backfire. Repaying early, even in small amounts, reduces interest and helps build credit.
5. Missing Loan Forgiveness Opportunities
Programs like Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness can eliminate a significant portion of your debt. Don’t ignore them.
6. Not Having a Repayment Strategy
A vague “I’ll pay it off eventually” attitude causes missed payments and financial stress. Use a repayment plan and automate payments when possible.
7. Choosing the Wrong Repayment Plan
Federal loans offer several plans. If you’re struggling financially, options like income-driven repayment can reduce monthly burdens.
8. Ignoring Your Financial Aid Office
Many students never talk to their school’s financial aid counselors. These professionals can explain your loan in plain language and offer repayment help.
Final Thoughts
Student loan debt is manageable—if you’re proactive and informed. Avoid these common mistakes to protect your financial future and graduate with peace of mind, not panic.
