Do Your Research
Not all loans are the same. Some loans, such as the ones provided by ISM Education Loans, offer benefits during school and after graduation in the form of repayment incentives. For example, ISM offers a .25% interest rate reduction when you sign up to have your monthly payments withdrawn from your bank account electronically. For more information on this process, also known as Direct Debit, click here.
Pay Attention to the Mail
You will receive important information regarding your student loan before, during and after school. Read all materials you receive carefully - and if you have questions, do not hesitate to get full answers. You have rights as a borrower. Read your correspondence so you do not miss out on important deadlines or details.
Attend All Required Entrance and Exit Counseling Sessions
You will be required to complete loan counseling sessions when you first obtain a student loan (entrance counseling), and again upon graduation (exit counseling). Many schools offer this on-line, and the sessions will not require a great amount of your time. They will, however, provide you with a great deal of information on your rights and responsibilities as a borrower.
Pay Interest on Unsubsidized Loans While You are in School
If possible, pay accruing interest while you are in school. These payments may be small, but they will reduce your overall debt when you enter repayment. For example, interest accruing at a rate of 5% equals roughly $4 per month per $1,000 borrowed. If you choose to have the interest capitalized (i.e. added to your loan balance) instead of paying the interest on a regular basis, the total interest that accrues and would be capitalized on a $5,000 loan over a 4-year in-school period is $1,000.
Maintain At Least Half-Time Enrollment
In order to qualify for an in-school deferment, you must be enrolled at least half-time (normally 6 credit hours). See your financial aid officer to find out your school's requirement for half-time status.