Borrowing

As costs continue to rise, more and more students find it necessary to borrow money to pay for their education. Fortunately, from student loans to lines of credit, there are a number of financial solutions available to you.

How much should you borrow?
Before applying for a loan, you will need to make a budget. First, calculate your expenses for the upcoming school year including tuition, books, transportation and the costs of living. Next, determine how much money you already have to contribute and how much you expect to make over the course of the year. The difference between the two figures is the amount you'll need to borrow.

Also consider your repayment strategy. Will you be able to handle the monthly payments? If not, you'll need to look for alternate ways to finance your education, or reduce your total costs.

Borrowing options
In most cases, government student loans offer the best terms. There are no payments due and no interest until after graduation. Further, if you qualify for loan remission, you may only have to pay back a portion of the loan.

If you are not eligible for a government loan, other options are an education loan or a line of credit.

Another good idea is to apply for a student credit card, but keep in mind that credit card interest rates can be high. A credit card should only be used for small, unexpected expenses, and money available to you through a credit card should not be included in your budget.

Used responsibly, a credit card will improve your credit rating, making you a better candidate for loan approval should you need to borrow on a larger scale next year.

We'd love to help you with all of your post-secondary education questions:

 

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Federal Continuance

For information on upcoming changes to DEPOSIT INSURANCE if we become a federal credit union, see our disclosure notice. Creditors who have concerns may contact Innovation Credit Union.

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