Submitted by:  Charla Rasmussen, National Student Loan Program

Student loans are like puzzles. And while student loan borrowers see the pieces, they often struggle to put them together. You can use these resources to help them understand their student loan and manage their financial obligation.

After your students take out a loan, they need a budget to avoid overspending. Money Matters for Students, www.smartcredittips.com/budg.html, has an online budget worksheet that can assist them recording their income and expenses like tuition, books, rent, credit cards, and student loan payments.

Before they can include student loan payments in their budget, they need to find out how much they owe. NSLDS, www.nslds.ed.gov, tracks loan statuses and outstanding balances from approval through repayment. Students can visit the Financial Aid Review section and access their loan information using their SSN, first two letters of their last name, date of birth, and PIN.

Once students know what they owe, they can estimate their future monthly payments. Mapping Your Future’s Student Loan Calculator, www.mapping-your-future.org/features/loancalc.htm figures the student’s monthly payment based on the principal loan amount, number of monthly payments, and the interest rate. The calculator provides them with their monthly payment and the minimum annual salary needed to make those payments successfully.

Students who experience a hardship can adjust or postpone their loan payments. Mapping Your Future’s chart, www.mapping-your-future.org/paying/defernav.htm, lists types of loan deferments, definitions, and eligibility information. Students can also download deferment forms from the website.

By helping students sort the pieces of the student loan puzzle, they may have an easier time putting them together and a greater chance of successfully managing their loan.