DeFAULT PREVENTION AND DEBT Management
Managing Your Student Loan Debt
Educational loans are a financial resource for students that are trying to bridge the gap between expenses and other forms of aid, but you should cautiously consider the amount of student loan debt that you incur. Student loan debt has serious long term financial obligations and it is a debt that must be repaid. You will be charged interest in addition to the amount that you borrow. If you fail to make your monthly payments on time, it could affect you credit rating and your ability to borrow money for other purposes, such as purchasing a car or a home.
Before you take out your first student loan, FAU strongly recommends you review the information presented in this section. The section is broken down into 5 topics, each designed to help effectively manage your student loan debt. A brief description of each section is as follows:
Determining Your Borrowing Needs - provides you links to information to allow you to estimate the costs to attend FAU.
Loan Fundamentals - provides you with an overview of the different types of student loans. The terms of the loans, their interest rates, and important factors to consider when borrowing are presented.
Determining Your Affordable Debt Level - is an exercise which will provide you a strategy to determine the MAXIMUM amount of student loan debt you should incur in pursuit of your degree. A link to the U.S. Department of Labor Occupational Outlook Handbook is provided to allow you to obtain information on earnings for a wide variety of professions. Based on your anticipated earnings, charts are provided to advise you on the MAXIMUM amount of student loan debt which would be considered “manageable” based on your anticipated earnings.
Repayment Strategies and Tips
Additional Resources on Student Loan Debt Management and Debt Management