Student Loan Dodgers

Your college career can last for several years, and it’s a good bet that you’ll be taking student loans at some point. If you’re a smart borrower, you’ll want to keep tabs on your loan balances, and have some idea of what your monthly payments will be when you graduate.

CollegeInColorado.org provides a calculator to help you do just that. The calculator can help you determine what your loan balances are, the rates at which your loans accrue interest, and how much you can expect to earn (and pay) after graduation.

Knowing where you stand when it comes to borrowing, and understanding how your loan balances change as interest accrues will help you keep a good perspective on how much you owe, and how much you’ll need to make to cover your loan payments after you graduate.

As you work your way through college, try to keep your borrowing to a minimum. As always, exhaust all of your Federal borrowing options first. Be diligent about searching for scholarships and grants. Even small grants can translate to big savings when it comes to reducing the amount of borrowing you need to do. Borrow only what you need to get through school. For day-to-day expenses, use personal savings or take a part-time job.

Finally, don’t forget that credit card purchases are a form of borrowing. The purchases you make on a credit card will carry a high interest rate if you don’t pay the balance off in full at the end of each billing Avoid making purchases on credit. If you can’t do that, keep your credit purchases small and pay your balance off at the end of the month. If you’re using your credit card to cover purchases that your income doesn’t, you need to rethink your monthly budget. Remember: you can’t get ahead by running up your credit card balance!