(written by Val, College Outreach Specialist at the Center for College Planning)

Hi bloggers,

Do any of you have older brothers and sisters that recently graduated from college?  If you do, (and even if you don’t…its still information everyone-including you, should know), then I have a great article that you may want to share with them. 

Do you think it’s crazy that someone could “forget” or not remember the different loans that they may have taken out to help pay for college?  Do you think that could never happen to you?  Unfortunately, it happens all of the time.  I know many well-meaning recent graduates that simply lost track of all of the loans that they acquired during the course of their college career.  Paperwork on the loans is usually sent home, lost, thrown away, or never opened, leaving these students without the information necessary to make their payments on-time.  Missing payments can affect a person’s ability to receive future loans for things like a car or a house, and no one ever wants that to happen to them!

The best thing a person can do for themselves while they are going through college is to keep track of the loans and amounts borrowed in each of them.  I had a folder designated for each loan so that I could put updated interest statements or other correspondence from them all in the same place.  Not only did it keep me informed and organized, it helped me stay on top of what my payments would look like upon graduation.  I needed to make sure that the amount I borrowed would be a reasonable amount for me to pay back when my repayment began.

For those of you that have already graduated, it’s not too late to research where your loans are and address any lack in payment now.  Do not pretend that the problem will resolve itself; it never does!  If you are not sure how many loans you have outstanding you can always contact the Financial Aid or Bursar’s Office at your alma mater, or run a credit report and cross-reference the loans listed with the loans that you are aware of and have been paying on versus any that you did not remember receiving.  Finding out now will save you a lot of money down the road!

Be proactive and take personal responsibility for your finances.  It may sound scary to confront head-on any outstanding debt that you may have, but you will feel better for having done so (and your credit score will thank you!)

Become loan smart,
Val