A few months ago, the Class of 2015 received some pretty sobering news along with their college diplomas; combined, they graduated with over $68 billion in federal and private student loan debt. Yes, that’s billion with a ‘B’ and not million. And, they now hold the dubious title of the most indebted class ever with an average of $35,051 in loan debt per student, according to the Wall Street Journal. But fear not, that title is bound to be surpassed by the next graduating class.

It seems as though taking on student loan debt is now part of the college experience. In fact, nearly 71% of college students leave with some form of student loan debt. Does that mean that student loans are bad? No, but if you aren’t smart about how you borrow and repay them, you could find yourself in trouble. So, what can you do to keep from taking on too much debt or ending up in default? Follow these simple tips.

1. Stay Informed

It can be tempting to let someone else do all the paperwork, but resist handing that responsibility over to others. Complete the Free Application for Federal Student Aid (FAFSA) yourself and review all documents concerning financial aid. If you plan on taking out federal student loans, pay attention to the online entrance counseling; there is a wealth of information regarding your responsibilities and where you can go to get help with your financial aid problems. Another reason why you should do this yourself is that the documents will be in your name. You’ll have certain rights and responsibilities, and if you aren’t a part of the process how can you possibly understand what you owe or how to pay it? Be smart and stay informed!

2. Exhaust Federal Financial Aid First

They easiest way to stay out of trouble is to exhaust your federal financial aid options first. Every January, beginning with your senior year of high school, you will need to submit the FAFSA. This will give you access to federal grants, work-study opportunities and loans. Unlike private student loans, federal loans typically have lower interest rates and more flexible repayment plans. If you still need additional funding, consider applying for private scholarships (check with your financial aid office first to see if outside scholarships are accepted) before taking on any private student loans. This will help keep your debt in check.

3. Don’t Borrow More Than You Need

Whenever you enroll in college, there is this magic little number called the Cost of Attendance (COA). It includes pretty much every expense you could possibly have while in school, such as tuition, supplies and other fees. When your school puts together a financial aid package, it may include grants, scholarships, loans and other financial aid to help cover your total COA. But, here’s the kicker; you probably won’t need to spend that much. Why? There are ways to reduce your expenses, such as buying used materials, cooking your own meals, and using public transportation. You can also pick up a part-time job to help cover some of your college expenses. Before you accept any student loan offer, sit down and create a budget to determine the minimum amount you need to borrow to ensure your expenses are met.

4. Have a Repayment Strategy

One of the best ways to ensure you don’t end up with more student loan debt than you can handle is to educate yourself about the various federal student loan repayment options, such a forgiveness, income-based and pay-as-you-earn plans. You can also reduce your overall debt by making small interest payments while you are still in school (Don’t spend those tips you get - use them to pay down your loans right now!). Each year, review your outstanding student loans, and determine how much you owe and what your monthly payment will be when you graduate. This can really help you keep things in check and keep you from getting into financial trouble.

Remember…

Student loans are there to help you pay for college, but if you aren’t smart about how much you borrow, you could end up with buyer’s remorse. Research your intended career path, read all financial documents, and ask questions. If you need additional help, be sure to talk to your college financial aid office or visit the Federal Student Aid website.

This content was provided by the Jacksonville Beauty Institute for educational purposes only. If you are interested in learning more about the financial aid opportunities at our Jacksonville, Tampa Bay or Orlando campuses, please call 855-532-2677 or visit our website, www.jacksonvillebeautyinstitute.edu.