Whether you are thinking of a career change, looking for personal development, or are just hungry for new knowledge, studying is a great decision that can help you achieve your goal. Taking up studying allows you to learn new skills, opens doors, and sets you up for a brighter future. That said, education can be expensive.
While loans for students are a great avenue for funding your studies, many are hesitant to take on one because of a few misconceptions. There are a multitude of factors to consider when taking up a student loan and investing in your own future. Overcome the fear of student loans and you’d be left with the question: just how much should I borrow?
Borrow within your means
You don’t need an accounting diploma or finance degree to decide how much you should borrow. However, it is still important to run some numbers to ensure that you will have no troubles repaying your student loans. People who take on too much student loan may struggle to make repayments within a reasonable amount of time and missing them can affect your credit score negatively. On the flip side, if you are too conservative, you may end up not having enough money to complete your studies on time. Consider apply for scholarships you are eligible for and to borrow as little as you need.
Adjusting your lifestyle
Taking on a loan of any type is a long-term commitment that requires planning and discipline. You may need to reconsider your monthly budget and be more aware about where you are spending your money.
If fulltime work is not possible, consider working on a casual or part-time basis to ensure a steady source of income to make your student loan repayments. On the same note, reduce your outflow of money by cutting back on wants and focusing only on your needs. You may have to go on fewer brunches, making your own coffee instead of buying, and perhaps moving out of your expensive apartment to a cheaper option. All in all, it is still possible to socialise and enjoy things on a budget if you plan your expenses and stay disciplined.
Do the maths
If you are still trying to figure out how much money you need to borrow, consider using the loan repayment calculator to estimate your monthly repayments. Make sure you can always pay on time in order to reduce your debt level. At Study Loan, you can also repay your loan balance early at any point without having to pay additional early repayment fees. Contact us at 1800 324 909 to learn more about how you can apply for a study loan today!
They Aren’t a Scam | Before borrowing any money from anywhere, you should do your research. Ask important questions such as ‘What is my interest rate?’, ‘At what increments do my repayments increase?’, ‘When do my repayments begin?’, ‘What happens if I miss a payment?’ etc. Asking the important questions now, saves you from worrying later and helps you determine whether who you are borrowing from is a scam or not. We have more FAQs for you here – https://studyloans.com.au/students/#faq
A Loan should NOT Worry You | Debt is a scary word, yes, but our repayments are friendly. Borrowing and debt go hand-in-hand, so to stay on top of it, it’s best to have a plan. Develop an idea of how you’re going to pay back your student loan and take initiative to stick to it. Remember that you will have to pay back your student loan no matter what, even if you were unable to complete your degree or decide to drop out, you will still be on hold for the money that has been released up until that point.
Payback should be Constant and Simple | Make sure to estimate and draft out what costs you are looking at for your course and how much you are going to need to potentially borrow. Whenever you have extra money, make payments towards your loan to reduce your overall debt. There are no early repayment penalties with Study Loans so pay away if you have the opportunity to! Even better, think about setting aside a little extra each week or month (whatever works best for you) in addition to your weekly, fortnightly or monthly payments.
EXTRA TIP | Borrow as little as possible, not as much as available.