Keep Loan Cost Low
A student loan provides funds to pay for your education. It is a financial obligation just like any other debt you incur. You are responsible for repaying the loan in full, even if you do not complete school, are not employed in your degree field, or were not satisfied with your education experience.
Managing your finances helps you successfully repay your education loan or loans. Plan for repayment now to achieve financial security and well-being in the future.
Develop a budget. Begin by estimating both your salary and your living expenses.
Borrow only what you need. Don’t take out the maximum loan amounts unless that is necessary to meet the costs of your education. Borrowing less today means less to pay back tomorrow.
Get organized. Keep all of your loan documents in one place. Review your documents to make sure you understand your financial obligations.
Know when interest is accruing. Consider making interest payments on unsubsidized loans while you're in school and during your grace period to reduce your total costs. Interest that is not paid during an in-school or deferment period will be capitalized, or added, to your loan balance at the end. This means your total loan costs will be higher.
Pay on Time. Paying your loan on time helps you: maintain good credit, reduce interest costs, and may qualify you for cost reductions, if applicable.
Prepay. Paying some, or all, of the loan early reduces the balance resulting in less interest over the life of the loan. There is never a prepayment penalty on AlaskAdvantage loans.
Make payments in non-payment status, if you can. Making payments even while in a non-payment status can save you money over the term of your loan. If pre-paying, always consider paying your highest-interest rate loans first.