First Person: Making the Most of My Student Loans

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Federal lawmakers are eyeing student loans and other aid programs as they look to make budget cuts. As a result, many schools are making prospective student borrowers lay out a plan for repayment before they even take the loans. This can be intimidating for students who wish to borrow funds for their degree programs.

If you are one of these students, you should plan carefully before deciding how much to borrow. It is easy to borrow with the thought that you can pay it back over many years, but when you are in the position to have to pay back these loans, you may wish that you hadn't borrowed so much. Due to my military career, I have spent over 14 years in school, in pursuit of the three Associate's Degrees and one Bachelor's Degree that I currently hold. I was able to plan carefully and take out the bare minimum of student loans.

Budget

First, draw up a budget for each semester. Make a list of ALL incoming funds, to include money from part-time jobs and other income. Make a list of all outgoing expenses, including tuition, books, meals, entertainment, fuel and other expenses. Include a buffer for any unexpected expenses, such as tuition increases. For most of my college career, I received tuition assistance, so I was able to calculate that in to my incoming funds.

Grants and Scholarships

Apply for every grant and scholarship that you can, even if it's a long shot. This is a long, time-consuming process, but it can pay off greatly. Apply for everything you may be remotely eligible for, even if you think it's a long shot. I've won several small scholarships that I didn't think I had a chance at. You never know until you try. Scholarships and grants will reduce the amount of student loans you have to borrow, and reduce the amount you have to pay back.

Internships and Work-Study Programs

Check out internship and work-study programs at your school. Many of these programs pay for your hard work, and can help you reduce the amount of money that you have to borrow. At my first college, I worked in the Veteran's office processing GI Bill and Tuition Assistance applications. The pay was only minimum wage, but I got valuable work experience and a nice paycheck for doing a job that I loved.

Military Reserves or National Guard

The military reserves aren't for everyone. However, if you think you can do it, it's a great way to get a full ride to school. After your initial training, you are only required to participate one weekend a month and two weeks in the summer (unless you are called for deployment). The Reserves offer a great tuition assistance program, PLUS you are eligible for the Montgomery GI Bill. The majority of states offer FREE tuition for National Guard members, PLUS the GI Bill. In addition, you get a paycheck for showing up to monthly drill and annual training. I am currently in the Reserves and taking advantage of tuition assistance and GI Bill money to finish yet another degree. When I am deployed, my school puts my classes on hold and lets me finish when I return.

There are many ways to reduce your student loan burden. It is possible to get a degree without any student loans, but it's a lot of hard work. You just have to plan every penny and balance work, school and other aspects of your life. It's completely worth it once you come out on the other side with a debt-free degree.