College and Student Loan Mistakes
When students get to college, for many of them it is a time of freedom: freedom to act and dress as they please, freedom from their parents, and to a degree, financial freedom as well. However, it's important as a student (and as a parent of a student) to encourage responsible decision making when it comes to loans.
Although it's tempting to think of it as such, these loans are most definitely not "free money". Scholarships are great, but even those sometimes come with strings attached.
So what are some common mistakes? Applying too late, when deadlines are approaching, or even worse, not applying at all. There are millions of dollars in federal aid that go unused every year in the United States. Don't wait until the last minute to apply -- in some cases, it will take some time to gather all the information you need, including tax data, information about your parent(s) revenue, and other information.
Another important consideration is your relationship with your school's financial aid office. If you have personalized service, remember you are building a foundation with them--treat them with respect and they will reciprocate. No one appreciates having a load of work dropped on them at the last moment. Also, these services are generally free. While there are some unscrupulous websites online that charge you money for "scholarship services" it is best not to pay someone unless you really know their service is worth it.
Make sure to focus on federal lending programs first, like the Stafford and Perkins loans, before considering private lenders? Why? Interest rates -- federal loans can offer two percent or greater benefits. This might not seem like a lot right now, but it will add up to hundreds of dollars over the lifetime of your loan. Don't pay tomorrow for mistakes you make today.