Tip 1	Find out from the school's financial aid office what other aid you can receive-grants, scholarships, and work-study-before applying for a loan.
Tip 2	Ask the school financial aid officer to explain your budget. Make sure you understand the total cost of attending school, including the estimated living expenses.
Tip 3	Schools have rules on making refunds to students who withdraw. Know the details of a school's refund policy before you enroll. It can usually be found in the student handbook or the class schedule. Schools are required to provide you with this and other consumer information.
Tip 4	Check into the employment opportunities in the occupation you have chosen before you enroll in a program of study. Get information about pay for the type of job you'll be seeking when you complete the program. Will you earn enough to make the loan payments and meet other expenses for yourself and any family responsibilities? Those who default on student loans often do so after they're disappointed because the schooling they received didn't lead to the type of job or pay they expected. Disappointment is understandable, but this doesn't mean you don't have to repay the loan.
Tip 5	Borrow only what you need. Remember, you must repay your loan. The following chart shows the approximate monthly payment required on a Federal Stafford Loan depending on the interest rate. For new borrowers who have no outstanding loan balance, the interest rate is a variable rate with a cap of 8.25 percent. The rate is recalculated annually and is in effect for a 12-month period beginning July 1 and ending June 30. Note that the chart shows the approximate monthly payment required on each Federal Stafford Loan. For example, if you have two $2,500 loans, each from a different lender, your monthly payment would be $100 ($50 to each lender). For a quick estimate of how much you will pay based on how much you have borrowed, the interest rate, and the repayment period, use the Loan Repayment Calculator.
Tip 6	Federal regulations require all students receiving their first Federal Stafford Loan to complete entrance counseling before their funds will be released. The school you attend is required to provide this counseling service.
Tip 7	Consider getting all of your loans through one lender to minimize the chances of having to make payments to two or more institutions at the same time. The Master Promissory Note (MPN) can be used for up to 10 years if you use only one lender. Serial loans for repeat borrowers at eligible schools can result in a paper-free process.
Tip 8	Use student loans only for educational purposes. Giving false information, forging any information, or using loan funds for any purpose other than legitimate school expenses is a criminal offense.
Tip 9	When you begin repaying your loan, keep your payments up to date. Generally, you have up to 10 years to repay your student loans under the standard, graduated, or income-sensitive repayment options. A minimum monthly payment amount of $50 is required. Your repayment duration and amount will be calculated based on your loan balance. If you have no outstanding balance on student loans made before October 7, 1998, an extended repayment plan is available if you owe more than $30,000 in student loans. Under the extended repayment plan, you can take up to 25 years to pay, depending on how much you owe.
Tip 10	As you make your payments, consider rounding up-a few more dollars paid each month reduces the overall amount of interest you will pay over the life of the loan. If you pay an extra $10 each month, $120 per year, the extra money is applied to the principal you owe, which lowers the amount of interest you will be charged.
Tip 11	If you have any trouble making your payments, contact your lender immediately. You may be able to postpone or reduce your payments temporarily through a deferment or forbearance. Before you enter repayment, you will go through exit counseling, which will explain what kinds of deferments and forbearances are available.
Tip 12	Contact your lender about consolidating your student loan accounts. Depending on your balance, the Federal Consolidation Loan Program can extend the repayment period for up to 30 years. Graduated or income-sensitive repayment schedules may be available. Many loan types are eligible for consolidation.