Skip to main content

Three Tips For Utilizing Federal Student Loans

federal student loans

Researching how you will pay for college? Considering utilizing federal student loans? Read the top three tips from a student financial services expert before you apply!

Your time as a student should be an exciting one, a time that you feel supported to grow intellectually and personally, all while being supported by a university staff that is devoted to your success. Your time as a student, however, is most likely also a very busy time. While juggling so much in the academic and extracurricular space, it's not uncommon to lose track of the fleeting (yet long-lasting) financial decisions you make as a college student. The achievement of a higher education comes at a cost. Financing it through federal student loans is the most common method of paying. Here are three tips for you to consider before applying for federal student loans:

Know Your Alternatives

Since federal student loans are the most common method of paying, this option is often misinterpreted as the only method. Not so! Sometimes the other options are right under our noses and we don't even realize it. For instance, when was the last time you checked in with your employer's human resources department to determine if it offers tuition reimbursement to employees? You might be surprised what you learn. Try Googling "scholarships for college students who are working adults." There are over 90 million results for this. Let's not forget the approach of paying the tuition for a college course when you have saved up enough money. You might not finish your degree in four years, but doesn't the idea of graduating with no student loan debt sound amazing?

While those other options are certainly superior to borrowing student loans (which may take decades to pay back), they may not be options for you. If you rely on federal student loans to fund your educational costs, here are a couple more tips for you to consider now:

Control Your Borrow

You control the amount you borrow. Simply put, you're not required to accept the entire amount of loans you're offered. You have the right as a student loan borrower to request a reduction to your award or to cancel it entirely. The choice is yours.

Calculate Your Payment

Consider the potential income you may earn upon graduation. The job of your dreams may pay a lower income in the real world. Your total monthly payment of federal student loans after you graduate could easily be as much as a car payment. Is this something you will easily fit into your personal budget? To understand the potential impact to your future payment amounts, use the Federal Student Aid Repayment Estimator. Once you login, it will transfer real-time information about your personal federal student loans. You can even test how the different payment strategies affect your monthly amount.

If you know a college graduate that is currently repaying student loans, don't be shy. Ask for his or her advice. What that grad shares will echo some of the tips above but may uncover additional considerations not mentioned.

Jeremy Brannan is an assistant vice president of Student Financial Services at Southern New Hampshire University.

Explore more content like this article

A graduate wearing a cap and gown, holding up her diploma at an SNHU Commencement ceremony

Top 7 Reasons Why College is Important

Have you ever wondered why is college important? While a college degree can improve your earning potential and employment opportunities, it can also significantly impact other areas of your life, such as your relationships, future preparedness and ability to make a difference in your community.
A college student completing work in her online college course

Are Online College Courses Worth It?

Taking college courses online opens up several new possibilities. You can take classes from the comfort of your home, while saving both time and money on your education. Before deciding if online courses are for you, be sure to consider your own personal needs, goals and challenges.
A person sitting on a bench, researching what an undergraduate degree is on a laptop.

What is an Undergraduate Degree?

An undergraduate degree marks the first step on your higher education path. It describes two kinds of degrees: associate and bachelor’s degrees. By earning an undergraduate degree, you can better prepare yourself for a career or position yourself to attend graduate school.

About Southern New Hampshire University

Two students walking in front of Monadnock Hall

SNHU is a nonprofit, accredited university with a mission to make high-quality education more accessible and affordable for everyone.

Founded in 1932, and online since 1995, we’ve helped countless students reach their goals with flexible, career-focused programs. Our 300-acre campus in Manchester, NH is home to over 3,000 students, and we serve over 135,000 students online. Visit our about SNHU page to learn more about our mission, accreditations, leadership team, national recognitions and awards.