How to Use Your Student Loans the Right Way

When it comes to paying for college, it’s almost impossible these days to not take out some sort of student loan. And once you have that kind of debt, there are smart ways and not-so-smart ways to handle it. If you take them out, make sure to use your student loans the right away.

How to Use Your Student Loans the Right Way

Pay for Things in the Right Order.

Once you have the money from your student loans, immediately pay for your tuition and room and board. If you have funds left over, use them to purchase a meal plan and then some — not all — of your books. (You may not even need every textbook on your professor’s syllabus.)

Return the Extra Funds.

If after all that, you still have money from your loans leftover, return it to your lender to decrease how much you’ll owe back. Remember, that money isn’t really yours, and by not returning it if you’re able to, you’re only adding to the debt you’ll eventually have to pay back.

Don’t Think of the Your Student Loans as Income.

Too many students think that they can take out larger loan amounts and use the money for everyday expenses. We can’t stress enough how bad of an idea that is. The more money you unnecessarily take out, the more principal and interest you’ll have to pay back. Only take out what you need, and get a part-time job to pay for other expenses.

While it’s somewhat hard to not take out student loans in this day and age, it doesn’t mean you have to take out large amounts. At American Investment Planners LLC, we make it a priority to help you prepare for the best financial future possible. From 529 college savings plans to estate planning, we’re here to help with anything you may need. To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.