Argosy University

My Money Management

Managing Your Financial Aid - Planning for today, and tomorrow

While student loans are readily available to most students, exercise caution before simply signing up for the maximum loan for which you qualify. This is debt that must eventually be repaid. Specifically:

  • Check out ways to cut costs and only borrow the minimum amount you need.
  • Be careful about borrowing during the first year; if you decide to discontinue school you will still owe the debt.
  • Be conscious of the total amount you will borrow by the time you graduate, the total cost of your loan, and the monthly payments that will be required once you enter repayment. In short, be smart about the debt you are taking on and budget your expenses appropriately after graduation.

Student loans are nearly impossible to discharge in bankruptcy, so the student loan choices you make today could impact you for the rest of your life.

Paying Cash for School PAYS
By making a commitment to pay a minimum of $25/month toward school, you will not only benefit from going into less loan debt, you also will experience a significant difference when in repayment. The only reason to borrow money now is to defer payment until a later date – so even the smallest amount that you can pay while in school will save you hundreds of dollars over time.

For example, based on an interest rate of 6.8% calculated over 120 payments (standard 10-year repayment plan) here is what it would cost monthly to borrow $10,000:

Loan Amount
$10,000
Term Monthly
120
Total Paid
$115
Total
$13,809
Total Interest
$3,809

After making a $25 per month cash payment in-school ($300/annually):

Loan Amount
$9,700
Term Monthly
120
Total Paid
$111
Total
$13,395
Total Interest
$3,695

You save $414 in total payments, including $114 in total interest paid!

Tax Benefits of Paying for College
The higher education-related tax benefits that students and parents may take advantage of include but are not limited to:

  • The student loan interest deduction, which can reduce the taxable income of many student and parent loan borrowers based on the amount of interest paid by the borrower or on the borrower's behalf over the tax year;
  • The American Opportunity and Lifetime Learning tax credits, which allow many taxpayers to claim a credit against their federal income taxes for college tuition and fees paid during the tax year.

Any effort made to pay cash now and accumulate less debt will help ease excess financial burden in the future, and you will still be accomplishing the pursuit of a degree. We intend to help support your journey through higher education in the best way we can. Please contact or visit the office of Student Finance to obtain answers to any questions about how we can help you pay for college.

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