National Application Center :: pay for college
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Types of Aid
Responsible Borrowing
Loans Are Your Responsibility
Although loans can provide much-needed assistance in meeting college costs, be careful. Don't bite off more than you can chew. Borrow only what you need.
Given the ready availability of loans, some students decide to turn down the offer of a work-study job—to help insure academic success or to create more free time—and replace that part of the expected contribution with a loan. This is rarely a good idea. The number of hours of work colleges expect is based on what is manageable for their students. The benefits of the job (income, the chance to explore career paths and meet new people) far outweigh the disadvantages of additional loan repayments!
Don't forget that credit cards are a type of loan, too—with an extremely high interest rate. Avoid the temptation to live a student lifestyle beyond your means. Paying off credit card bills in total every month will improve your credit rating. Not paying them off could mean significant additional debt by the time graduation rolls around.
Entrance Loan Counseling
The federal government mandates completing a student loan entrance counseling session prior to obtaining a Federal Stafford student loan. This session ensures that you fully understand your rights and obligations as a student loan borrower.
Loans for higher education is often the key to a successful future — but it is also a serious obligation with specific responsibilities. This student loan counseling session will help prepare you for your new responsibilities while ensuring that you make the most of your higher education and enjoy a worry-free repayment process.
Exit Loan Counseling
Federal regulations require that your school at least attempt to conduct your exit counseling in person. If you have not heard from your financial aid office already, you should hear from them soon. But, if you missed your exit counseling session, left school without telling your financial aid office, or you just want more information about repaying your loan—or if your school is using this exit counseling session along with personal counseling—then keep reading. Your next counseling session ensures that you fully understand your rights and obligations as a student loan borrower.
The exit counseling session will cover those responsibilities, including:
- Your repayment options
- What to do if you're having trouble making payments
- What to do if you're transferring to another school