Emma Gutierrez: Hello! I'm Emma Gutierrez with Wells Fargo & Company. Today we're discussing how to manage your money during and after your college years.
First, you should explore all options and focus on gaining grants and scholarships that don't have to be repaid. If the combination of your savings, grants, scholarships and work-study isn't enough to pay for school you may need to borrow the money. You'll have to repay your student loans with interest. To keep your financial future healthy you should borrow only the amount you'll need.
You should always keep in mind that a student loan is a long-term commitment that needs to be repaid. Before you accept a student loan, search its rates and fees, the length of the repayment period and your rights and responsibilities as a borrower. If the college expenses exceed your income and available resource, you may need to borrow enough to cover the difference.
If you decide you need a student loan make sure you don't borrow too much. To repay your student loans try to keep your monthly student loan payment at 10% or less of the net monthly income you plan to earn after you finish school. Be realistic about what your salary will be after graduation.
A college degree can help you get higher paying jobs and over the course of your career you're likely to earn substantially more money with the college degree. But it may take sometime to get a job with the high salary and you'll need to prepare for that possibility.
Before you borrow for college cost you should carefully estimate the amount of debt you'll be able to handle without a lot of financial stress. By keeping your college loans at a manageable level you'll be able to pay off your college loans in a timely manner and start achieving the financial goals.