A GUIDE TO ESTABLISHING GOOD FINANCIAL HABITS

How can you achieve your dreams when faced with the reality of education loan debt?  The following tips can help you realize your financial goals and fulfill your educational and professional dreams. Getting into these habits can be a strategy for success both in-school and after graduation, and enable you to responsibly finance your education. 

     Identify your goals (personal, professional, and financial) and write them down.  Develop new strategies  for achieving those goals and reassess them periodically.

     Make informed choices about how to use your scarce financial resources. 

     Develop a monthly budget you can afford and stick to it.  Live below your means and learn to stretch your dollars while in school so that you can afford to live the lifestyle you want once you graduate. 

     Save what you can each month (even if only $5) so that you'll have funds available for emergencies. 

     Keep accurate, well-organized records of your financial activities. 

     Pay your bills prior to the due date.                                                                                          

     Establish and maintain a strong credit history; review your credit report annually. 

     Limit the number of credit cards you have and your available credit. 

     Pay your credit card balance in full each month.  Charge only what you know you can repay when the  bill arrives.  Better yet, consume with cash, not credit! 

     Be a well-informed borrower.  Understand the terms and conditions of your loan(s) as well as your rights and responsibilities as a borrower.  Not all loans are alike; know the differences and borrow wisely. 

     Be realistic about how much money you'll earn once you graduate; don't count on any immediate
             financial windfalls.  

     Borrow the minimum amount you need to achieve your goals and repay all that you borrow.  Evaluate   the impact of borrowing before you borrow.  Consider whether you will be able to afford to repay the loan(s) and willing to make the sacrifices necessary to do so.  Make adjustments in your borrowing if necessary.

      Pay the interest on unsubsidized federal and private loans while in school, if possible.