Debt Management
Make Informed Decisions About Your Future
The Texas Tech University Health Sciences Center Financial Aid Office is aware that most students must borrow loans to assist with funding their education. Although low-interest educational loans are made available to students, the fact is, that it is a loan and 鈥渓oans must be repaid".
Over $50 million in loans are borrowed each year by students at 香蕉直播. The average debt our student鈥檚 accumulate is below national averages but students still need sound debt management education to help with understanding their options for repayment of the loans.
It is the goal of the Financial Aid Office to help students make responsible decisions about borrowing and repayment of their loans and to provide the necessary tools to make informed and knowledgeable decisions about their future.
Financial Fitness
The costs of higher education continue to increase and students must determine how they will finance their education and what funding resources are available to help them meet their goal. Through the Financial Aid Office, funding sources are limited to federal loan programs, institutional scholarships and limited state grant/scholarship funding.
- Federal Direct Stafford - Subsidized Loan and Unsubsidized loan
- Federal Graduate/Plus Loan
Loan borrowing is a necessary part of education financing for many students. Your approach to how you handle and control your finances will make a difference in your lifestyle now and/or in the future. The best advice you can get is to 鈥渓ive like a student while you are in school so you don't have to live like a student while you are a health professional鈥�. For every $100 you spend using student loan money now will cost you about $200 by the time you've paid off your loans.
In some cases, students with higher costs because of family, housing, etc., may have to borrow from private alternative funding sources. These loans may have higher interest rates, are credit based, and may offer fewer benefits as compared to the federal loans. It is important for students to have a good credit report to prevent having a co-signer to qualify for the loan.
- Develop a realistic budget to live by -- and stick to it!
- Keep good records. Maintain all loan material in a single file
- Review your credit report. Learn the importance of your credit rating
- Limit the number of credit cards that you carry -- out of sight, out of mind!
- Pay your credit card balances off each month if you can
- Outline your professional and personal goals -- review yearly
- Borrow only what you need
- Check interest rates to select the best loan
- Know your repayment and the deferment options
- Read information about your loan choices
Budgeting and Financial Management Resources
- Financial literacy and loan management information
- Obtain a free annual copy of your credit history from the three major US credit bureaus (Equifax, Experian and TransUnion)
- Learn how to budget and manage your finances
- Find estimated costs for rent, living and other expenses to help you establish a monthly budget while in school
Financial Counseling
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- Entrance counseling ensures you understand the terms and conditions of your federal direct student loan and your rights and responsibilities. You'll learn what a loan is, how interest works, your options for repayment, and how to avoid delinquency and default.
- PLUS Credit Counseling will help students and parents understand the obligations associated with borrowing a PLUS loan and assist them in making careful decisions about taking on student loan debt. PLUS Credit Counseling is required if the U.S. Department of Education has informed you that you have an adverse credit history and you have obtained an endorser or documented extenuating circumstances to the satisfaction of the U.S. Department of Education
- The purpose of exit counseling is to ensure you understand your student loan obligations and are prepared for repayment. You'll learn about what your federal student loan payments will look like after school. We'll recommend a repayment strategy that best suits your future plans and goals.