1. Skipping FAFSA and federal aid entirely
Many borrowers go straight to private loans, missing out on federal grants and lower-cost loans.
Fix: Always submit the FAFSA every year—even if you doubt eligibility—and use federal subsidized loans before exploring private options.
2. Borrowing more than necessary
It’s tempting to grab more than you actually need, but excess borrowing leads to unnecessary debt.
Fix: Create a realistic budget (tuition, housing, food, books), and only borrow the exact amount needed .
3. Ignoring interest types and fees
Fixed vs. variable interest rates, origination fees, APR—these can dramatically change how much you repay.
Fix: Compare APRs (including fees), and carefully consider fixed vs. variable rates; federal loans are usually simpler and more transparent .
4. Overlooking grace periods & interest accrual
Unsubsidized loans accrue interest immediately—even during college. Letting it capitalize increases your principal.
Fix: Pay interest while enrolled or during grace periods to avoid compounding costs.
5. Missing or delaying payments
One missed payment can hurt your credit, trigger fees, or even lead to default.
Fix: Set up autopay (often comes with a small interest discount), and reach out to your servicer early if you’re struggling .
6. Choosing the wrong repayment plan
While a longer repayment period means smaller monthly payments, it also means more interest over time.
Fix: Aim to cap your payments around 10 % of gross income, and pay extra when possible to cut both interest and payoff time .
7. Not tracking loans or updating contact info
With multiple loans and servicers, it’s easy to miss statements or updates and face surprises.
Fix: Keep a centralized loan tracker (servicer, balance, due date), and always update your contact info.
8. Skipping entrance counseling
Federal loans require it—and skipping it means missing key info on loan terms, protections, and repayment strategies.
Fix: View entrance counseling as essential—learn about deferment, forbearance, income‑driven repayment (IDR), and forgiveness programs.
9. Ignoring alternative aid
Free money is everywhere—scholarships, grants, work‑study, or part‑time work reduce how much you need to borrow.
Fix: Apply early and often for scholarships/grants; consider work‑study or part‑time work to bridge funding gaps.
10. Cosigning without understanding the responsibility
Private loans often require cosigners, who are equally liable. Missed payments hit their credit too.
Fix: Only cosign if you’re fully committed. Understand terms, repayment schedule, and cosigner release policies—even though those are rare.
From Real Borrowers
Reddit users often highlight the painful lessons:
“I realized my balance had actually grown by over $20K… I didn’t know… unsubsidized loans start accruing interest immediately.”
Quick‑Reference
| Common Mistake | Why It’s Risky | Smart Fix |
|---|---|---|
| Skipping FAFSA | Lose out on free aid & protections | Submit yearly, even if unsure |
| Overborrowing | Larger debt, longer repayment | Create and follow a detailed budget |
| Ignoring APR/Rates | Could cost thousands more | Always compare real APRs & rate types |
| Letting interest capitalize | Big jump in total owed | Pay interest preemptively |
| Missing payments | Credit damage, fees, default risk | Use autopay; be proactive |
| Choosing poor plan | More interest, longer payoff | Cap at ~10% of income; pay extra |
| Poor tracking | Missed payments or notices | Use a centralized tracker system |
| Skipping counseling | Lack of awareness | Complete entrance counseling |
| Ignoring free aid | Unnecessary high borrowing | Seek out grants, scholarships |
| Careless cosigning | Cosigner’s credit at risk too | Understand fully before agreeing |
Approach student loans strategically:
- Plan ahead: Understand your costs and aid options.
- Borrow wisely: Stick to what’s necessary and choose federal first.
- Stay informed: Grasp rates, terms, and repayment paths.
- Stay organized: Track every loan and payment.
Borrow smart and use these tools and strategies to make your education an investment—not a burden.
