This is a message from the Shippensburg University Financial Aid Office.
For many college students, a possibly large refund check could be received a few days or weeks into the semester. This money is to be used for educationally related expenses (books, supplies, personal care expenses, transportation, etc.). However, the majority of these refund checks are coming from a student loan that will have to be paid back after graduation. If a student uses the refund check in full, this could increase the amount of overall debt they will have upon completion of their program. This could then increase the amount of time a student will be required to pay the loans back due to the increased amount of debt.
By creating a budget and making sure to only use what is needed, students can be responsible borrowers and reduce their overall loan debt upon graduation. Any monies that are not needed for a student’s educational expenses should be returned to the university so a refund can be made to the student loan which will reduce the overall loan debt upon graduation.
Developing a budget will keep students aware of their expenses and help them reach the ultimate goal of graduating with as little debt as possible. Little changes, like packing a lunch, borrowing movies and books from the library, carpooling or participating in free campus activities, can make a big change in the amount of money saved. Start building a budget by using any of the free online services. Simply Google “making a budget.”
It is important for students to remember how much they borrow from year to year. Students do not want to be shocked at their total loan balance when it is time to graduate! NEW THIS YEAR - Every summer, the Shippensburg University Financial Aid office will now send students a borrower’s disclosure showing how much loan money they have borrowed. This will be a great tool to use to ensure students are not borrowing too much.
More information regarding financial literacy can be found e at www.ship.edu under the SU Financial Aid Office’s financial literacy tab.
And as always, if students have any questions, please feel free to reach out to the SU Financial Aid Office – finaid@ship.edu or 717-477-1131.
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