With college costs growing year after year, how do you go about securing the finances to further your education without ending up with a mountain of debt? Security State Bank is here to help guide you on your financial path of greater education! Use these tips and tricks to ensure you don’t bust the bank with your secondary education.
- Choose your loans wisely: Calculate the cost of the necessities – tuition, room and board, textbooks, and transportation – and sign loans that cover only what you need, even if you qualify for more. A part-time job or summer position can provide funds for added nonessential expenses. Your loan might allow you to defer interest while you’re still in school. However, unless it’s subsidized, it will accrue interest immediately. Unpaid interest can then compound and add to the principal, creating an even larger amount to repay. Paying interest as you go is another great way to decrease your overall costs and keep you debt maintainable.
- Increase your payments: If you’re on a 10-year installment plan, you’re paying a decade of interest on top of your original loan, adding more debt to your plate. When possible, pay back more than the minimum agreement each month and chop off extra time and interest. If you have multiple loans, direct your additional payments towards the loan with the highest interest rate. The faster you can pare down the principal, the less you accrue in exorbitant interest.
- Make installments as often as you are able: With less time between payments for interest to accumulate, an accelerated payment plan can decrease your repayment term. By doubling your schedule of installments and making more payments over the same time period, you’re able to lessen the interest and pay your loan off sooner.
- Track your interest: Motivate yourself with a continually updated track record of your current interest. The longer you have the loan, the more money you spend towards interest. Incentivize yourself by creating a cap for how much you want to pay in interest on a yearly basis. Let that help guide in making those extra payments.
Education is an important accomplishment in life, and we applaud those who take the initiative to obtain their degrees. If you’re a current or prospective student stop by Security State Bank today to learn about our online bill pay and other financial tools to help you maintain successful finances throughout your collegiate career.