Wasting the money from your student loan!
Many students choose to spend their financial aid on partying, clothes, gadgets, and eating out instead of on things like books, tuition, and room and board. Your hard-earned school loans should pay for your education, not your social life, so make good use of the money. You'll have to pay for them for a long time.
Credit Card Debt!
Even responsible adults can rack up a lot of credit card debt, but students shouldn't get multiple credit cards because they have no other way to make money besides school loans and money from their parents. This is a bad idea because when students graduate, they will have to pay back both their school loans and large credit card balances. The biggest company that gives out student loans, Nellie May, says that most graduate students have an average credit card debt of $5,800.
Not paying your bills when they are due!
You won't be able to buy a car, rent an apartment, or even get a cell phone after you graduate if you have a lot of credit card debt and don't pay your bills on time. Keep your credit score high by not using too many credit cards and paying your bills on time. In a few years, you'll be glad you did it.
Bad Budgeting!
When you're in college, you usually have a fixed income. Whether you get money from financial aid, a part-time job, or Mom and Dad, it's usually not a lot, so it's important to make a budget. A monthly budget doesn't mean you can't do the things you want to do; it's just a plan to make sure the "must-pays" get paid. Find out what your monthly bills and expenses are and plan for those first. After that, you can use the rest of your money to buy things like CDs and kegs for fun.
Going to an expensive college!
Many students think they have to go to a 4-year college right after high school, even though they could take their pre-req classes at a community college for $25 per unit. Many people end up going to a C.C. anyway, but going to a local school first is a good way to save money and get the classes they need for cheap. After you finish these classes, you can move on to a 4-year college to finish your undergraduate degree. This will save you a lot of money that you would have spent on school loans and still be paying back when you are in your 30s.
Students make so many bad financial decisions because they don't know enough about money. Parents and high school teachers haven't taught students how important it is to keep a good credit score, pay bills on time, and make a budget. If you spend wisely while you are in college, you will be able to use the money you make after you graduate to buy things you want instead of paying off credit cards, school loans, and other bills.
Visit the website below to learn more about student loans and how to lower your payments.
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