Borrowing for school has become a common practice for college students. But before you take that step, make sure you have researched all potential sources of scholarships and grants.

Many students begin by filing a Free Application for Federal Student Aid (FAFSA). Filing early and before important deadlines may qualify you for optimal financial aid packages—putting you in a better position to pay down student loans after graduation.

According to the Institute for College Access and Success’s Student Debt for College Graduates in Massachusetts in 2019-20, 56% of Massachusetts college graduates had student loan debt with an average debt load of $33,457.  Compare that to the average federal loan debt for a Worcester State University student of just $29,051, as reported by the US Department of Education.

Bear in mind that debt can be expensive. Interest payments mount up and can significantly impact your future income.

While you should look at borrowing to help meet educational expenses as an investment in your future, you should use common sense and good personal financial practices. Do not feel alone if it seems like there is never enough money to make ends meet. There are people and organizations ready to help.

Worcester State’s Financial Aid Office is a great resource that you can use to help find ways to pay for school.

Creating a budget may sound complicated, but all you need to do to get started is set aside some time and get organized—the benefits will make the effort worthwhile. Visit Federal Student Aid for information on creating and managing your own budget.

Many people think that credit cards are “free.” In reality, you pay for the use of credit cards in every purchase you make. The merchant providing the service pays the credit card company and charges you in the price of the goods and services you buy (1.5 % to 3% or perhaps more). If you pay your credit balance each month, that is all you pay. If you carry your balance forward, you will also be charged interest of up to 19% or more on your balances.

Things to Know about Credit Cards

Credit cards can be a very handy tool for students if used correctly. If not, they can become a burden and can cost you a great deal in the interest that you pay the credit card companies. When applying for a credit card, look for the best deal. All credit cards are not the same.

• Look for the lowest interest rate you can find
• Look for a card with no annual fee
• Use only one credit card
• Do not charge more than you can pay off the next month

Paying balances in full at the end of each month is the best way to make sure that credit card debt does not get out of hand.

Avoid using credit cards to buy things that you could not afford to buy if you did not have one.

Even small card limits of $500 to $1,500 can seem enormous when you do not have the money to pay your balance and interest charges begin stacking up every month.

Manage debt now.

Stop spending money on things you do not need. If you can, live at home for a few months after graduation to save on rent. Do not use your credit card. If you have a summer job, work overtime or get another part time job and pay off your credit card debt.

Remember, you can only spend your money once. After that, you are spending the credit card company’s money and they charge you for the privilege.

Consumer Credit Counseling Service is a free nonprofit foundation, available to help you manage your debt. Call 800-388-2227 or visit the CCCS website.

Close Look at Credit

Maintaining good credit will help you:

• Rent an apartment
• Buy a car or house
• Get good interest rates on loans and credit cards
• Enable you to continue your education

Signs that you might have a problem with too much debt are:

• You regularly spend more than you take in every month
• You charge for small purchases such as groceries and gas because you do not have cash available
• You cannot pay more than the minimum on your credit card
• You are receiving calls from credit card collectors

Record Keeping

Keep all copies of loan, credit card, and checking account paperwork. Keep all notification from lenders, guarantors, and servicers. Keep all copies of utility bills, etc. to help in making an accurate budget. Read and respond to all mail.

A college education is an investment in oneself. The benefits of a college education are secured through a valuable education, with relatively low costs and high quality education. To afford this investment, some students choose to use student loans to assure their college experience is affordable. Most Worcester State students find their college loan debt to be less than their peers and are able to pay down those loans after graduation. Information about student loan debt and Worcester State’s cohort default rate can be found on the U.S. Department of Education’s College Scorecard.