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1. Choosing The Wrong Type Of Loan
You’d be surprised how many people pick a student loan like they’re ordering lunch. Fast and without reading the menu.
Not all loans are the same, and choosing the wrong one can cost you thousands later.
Federal loans usually come with lower interest and better repayment options, while private loans can be the financial equivalent of quicksand.
You might think a private loan looks “easier” to get, but that small decision can make your future payments feel like rent in downtown Miami.
Don’t get stuck paying extra just because you didn’t check the options.
👉 Here's How You'll Do It: Compare federal and private loan benefits side by side using StudentAid.gov before signing anything.
📌 SAVE IT FOR LATER! 📌
2. Taking Out Too Much Money
You know that feeling when the financial aid hits your account and you suddenly feel rich? Yeah… that’s the trap.
Borrowing more than you actually need feels nice at first, but that “extra” turns into years of extra payments and interest.
It’s like ordering a giant plate at a restaurant when you only wanted a snack. You still have to pay for it all.
Remember, every borrowed dollar comes with a side of interest that never seems to leave.
You’ll thank yourself later when your monthly payment doesn’t look like a car loan.
👉 Here's How You'll Do It: Borrow only what covers tuition and essentials. Use tools like the CollegeBoard’s calculator to estimate real expenses.
3. Using Loan Money For Non-Essentials
Look, no one’s judging. You want the new laptop, the weekend trip, maybe even a better apartment.
But using loan money for that stuff is basically future-you’s nightmare in disguise.
That “fun semester” can quickly turn into years of paying for pizza and parties with interest.
It’s not about being cheap. It’s about being smart enough to keep your lifestyle separate from your loan.
Ask yourself, “Would I still buy this if I had to pay cash today?” If not, maybe skip it.
👉 Here's How You'll Do It: Track spending with Rocket Money to make sure loans only cover true school expenses.
Bonus Tip: Create A Real Plan To Pay It All Off
At some point, those student loans start feeling like a bad ex who won’t stop calling.
You keep paying, but the balance barely moves, and it’s like, “What am I doing wrong?”
Here’s the truth: you need a real payoff plan that shows you every step and keeps you motivated.
That’s where tools like Undebt.it come in handy. It helps thousands of people map out a debt-free timeline so they can actually see progress (and stop guessing).
Because let’s face it. Watching that balance go down is way more satisfying than pretending it doesn’t exist.
👉 Here's How You'll Do It: Create a free plan on Undebt.it to organize all your student loans and watch your progress drop like Miami heat in the rain.
4. Not Knowing Your Interest Rate
If you don’t know your loan’s interest rate, you’re basically driving blind on the financial highway.
That number decides how fast your balance grows while you’re busy studying or working.
A 6% interest rate might not sound scary, but after a few years, it can balloon into hundreds. Sometimes thousands. Extra.
You can’t manage what you don’t measure, so knowing your rate helps you plan smarter.
Treat your interest rate like your ex’s number: something you memorize because ignoring it always causes problems later.
👉 Here's How You'll Do It: Log into your loan servicer’s dashboard or use NerdWallet’s loan calculator to check how much interest adds up monthly.
5. Not Planning How To Pay It Back
Graduation feels amazing. Until those loan statements start showing up like uninvited guests.
Without a plan, repayment becomes this stressful guessing game that never ends.
The truth is, you need a strategy before your first payment hits. Not after.
Think of repayment like a workout plan: consistency beats intensity.
Set your payment goals early so you don’t end up broke and panicking six months after graduation.
👉 Here's How You'll Do It: Use Undebt.it to create a personalized payoff plan that tracks your balances and progress automatically.
📌 SAVE IT FOR LATER! 📌
And that’s it!
Never forget it…
🍔 A Bigger Bank Account Is Waiting For You!
😉 Dale!
