Managing Debt

Managing debt as a college or professional student is crucial for setting yourself up for financial stability in the future and will keep you your head above water financially. We have rounded up all sorts of tips on how to be responsible about debt and expenses. You can also check out our other Financial Wellness topics to learn more about being fiscally responsible and saving yourself from future headaches.
  1. Create a Budget: Track your income and expenses to understand where your money goes. Allocate funds for essentials like tuition, housing, food, and transportation, and limit non-essential spending.
  2. Limit Credit Card Use: Credit cards can be tempting, but they often come with high-interest rates. Use them sparingly and pay off the balance in full each month to avoid accumulating debt. Do not carry a balance just to boost your credit score – this is a myth and oftentimes will only lead to exorbitant unpaid interest. Paying your credit card bill in full each month provides the same benefit of helping your credit score.
  3. Minimize Student Loans: Borrow only what you need for tuition and essentials. Look for scholarships, grants, and part-time work to supplement your finances rather than solely relying on loans. GMS, SPH, and medical students can utilize work study (based on available funding) to help with extra income during school and periods of non-enrollment.
  4. Understand Loan Terms: If you have student loans, understand the terms, interest rates, and repayment options. Consider federal loans first as they often offer more flexible repayment plans compared to private loans.
  5. Make Timely Payments: Pay your bills on time to avoid late fees and negative impacts on your credit score. Set reminders or automate payments to ensure you don’t miss deadlines.
  6. Live Within Your Means: Avoid unnecessary expenses and live frugally. Live with a roommate or two, cook at home, use public transportation, buy used textbooks, and explore free entertainment options.
  7. Prioritize High-Interest Debt: If you have multiple debts, focus on paying off high-interest debts first. This strategy can save you money in the long run.
  8. Seek Financial Assistance: If you’re struggling with debt, seek help from our office or your student life/affairs office. We’re here to provide advice, resources, and host numerous financial wellness workshops.
  9. Build an Emergency Fund: Start saving a small amount regularly for unexpected expenses. Having an emergency fund can prevent you from relying on credit cards or loans in times of crisis.
  10. Educate Yourself: Continuously educate yourself on personal finance. Understanding financial concepts and developing good money habits early on will serve you well in the future.

Remember, managing debt is about making conscious financial decisions. It might be challenging, but it’s an essential skill that will benefit you throughout your life.