Seminar Helps Students Tackle Debt

Employees from the National Student Loan Program presented a seminar to students at Nebraska Wesleyan University on Nov. 11 about how to handle debt. This event focused on both credit card and student loan debt, and included some good tips for students who want to improve their credit score and pay off their debt in a timely, cost-effective way. For those of you who were either unable to attend this seminar, or who chose not to, here are some of the most important points that were discussed:

1. Keep track of your debt. Create an Excel spreadsheet or something similar that works for you. Keep track of interest rates, payment due dates and any other important information. This makes it much more easily accessible later on. Update it each time you receive a bill.

2. Figure out how much you can pay each month on credit cards or student loans. Making at least the minimum payment will help keep your interest down and improve your credit score. If you pay the whole bill off at the end of the month, it will alleviate any interest from being accrued. Check out www.bankrate.com to see how long you’ll be paying off your debt with your current payment plan. It might make you rethink your spending.

3. Do not close all your credit card accounts just yet. Closing credit card accounts can actually hurt your credit score in the short-run. If you would like to keep them open but do not want to spend as much, charge something small (like a tank of gas) every six months to keep the card active. Credit card companies are starting to deactivate inactive cards due to new credit card laws.

4. Stop charging on your credit card. Pay with cash or your debit card - neither incur interest. Only charge items that you can pay off within a month or so OR that are necessary due to an emergency. Or, see point number three so your account does not get deactivated.

5. Know your payment options for student loans. Once you have graduated you can pay off loans with standard, graduated, income-sensitive or extended payment plans. These can be worked out through your lender.

6. Use your resources. Websites like www.finaid.org and www.nslp.org have loan payment calculators to give you an idea of how long you’ll be paying based on a certain monthly payment.

While these tips can be quite helpful, there are bound to be other questions that arise. For any further questions you might have about student loans, contact your lender or the Financial Aid office here at NWU. For questions regarding credit card debt, your best bet is to contact your credit card company directly.