Think of your student loan as a tiny seed that was planted for your education. It grows into a living loan that you’re responsible for keeping healthy throughout its life and through repayment. Our tips will help you learn how to nurture that seed so that you and your loans can enjoy a healthy and prosperous life.

The Facts of Life for Student Loans

When does life start for a student loan? How does your student loan develop, and when is it most crucial that you pay attention and nurture its development?

Formation

Once you have accepted the loan terms and signed your agreement, student loan formation begins with disbursement, which is when your student loan is paid out each semester. At this point, your student loan doesn’t just pay for your school. No – it’s the twinkle in your eye when you talk about what you’re going to do after college. Your student loan provides the promise for your future and feeds your dreams.

For most student loans, while you’re in school, the loan is still developing into a living loan that hasn’t yet emerged into your world. It may not seem fully real to you yet. However, if you don’t take precautions before your loan is born, it may develop complications you don’t know about while you’re in school – things like accruing interest. With early awareness, you can decide to make interest-only payments and avoid having the interest capitalize (added to your principal balance)! This can save you thousands of dollars in interest later. Even if you can’t make all the student loan payments, you can save some money by making occasional payments.

Can’t afford to make any payments on student loans while you’re in school? That’s fine. Then just take good care of your education by finishing your degree on time, and nurture your financial health by minimizing your credit card debt and the amount you borrow for your education.

Grace Period

There may be an additional grace period (usually of six months) after you leave school before you need to start making payments on your student loans. If you think your grace period is your last hurrah before all your budget, time, and energy go toward nurturing the growing new student loan you’ve introduced to the world, think again. Interest will continue to accrue during your grace period and may be capitalized if left unpaid. If you possibly can, avoid these complications by making interest-only or full payments.

Preparing for Repayment

You probably didn’t think your student loan experience signed you up for multiples. But when you get to graduation, you find that all those little seeds that paid for your education will come due at various times and will have different conditions, sleeping habits, and diet restrictions (no, not really). But you may have multiple student loans to repay, and before they come due, it’s time to prepare the nursery.

How do you prepare a nursery for student loans? Start with making a complete list of which loans are due when, what the monthly payments will be, who you’ll pay them to, and how to contact their loan servicers – as well the student loan interest rates. There are often repayment plan options for different types of student loans, so explore your options, figure out how much your payments will be, and sign up for payment plan options that will help you take care of all your loans. The goal is to prioritize and plan for repayment so that you can keep all of your student loans healthy.

When Student Loans Get Sick

An unhealthy student loan is one that becomes delinquent. It may start because you can’t keep track of your different loans. Or maybe you can’t afford to make all your payments. You miss one payment, and then another. It may go on your credit report. Eventually if you don’t make a payment), it defaults. Now it’s really affecting your life. With a defaulted student loan, you’ll mourn the loss of your positive credit standing for years to come. You’ll think ruefully of it when you apply for housing and are denied, when you don’t get the final call back for that dream job, or when you’re denied a loan to buy a car to replace the one that just died.

Don’t let problems with student loan repayment get to that point. There are often options for payment relief or to consolidate or refinance your student loans to make it easier to keep track of them, and to make payments more affordable. If you’re having problems keeping up with your payments, contact your servicer for options available.

Quick Tips for When You’re Expecting (Student Loan Repayment)

You’re a smart college graduate, but you haven’t had student loans before. We know it’s a lot to take care of, to have all these student loans coming due around the same time. That’s why we put together these tips for when you’re expecting student loan repayment.

1. Keep track while you’re in school (and definitely before your graduate!) of how much you’re borrowing, who your servicer is for each loan, what the interest rates are, which loans subsidized while you’re in school and grace, as well as who to contact if you have questions or concerns.
2. Keep your borrowing to a minimum. These are real living loans that will eventually need to be repaid – whether you finish your degree or not, whether you find a job in your field, whether you like your job. Don’t live in denial now.
3. Take care of complications early. If you identify interest accruing on un-subsidized loans (and at a high rate), take care of it with interest-only payments or occasional payments whenever you can make them during school and in your grace period. Every little bit helps. Avoid interest capitalization whenever possible. You’ll have more hungry mouths to feed later.
4. Choose payment options before repayment. Figure out how much payments will be and how you will make it all work so that you can take care of all of your loans when they’re due.

Nelnet Bank does not provide legal, investment, tax, or financial advice. This page and the information contained herein is for informational purposes only. This content is not meant to address the circumstances of any particular individual. Nothing contained in this article constitutes a recommendation or endorsement by Nelnet Bank. For specific advice about your unique circumstances, consult with a qualified professional.

From time to time, articles may provide hyperlinks to web pages operated by third parties. When you click on these hyperlinks, you will be leaving Nelnet Bank’s website. Nelnet Bank has no control over such sites or their content, and is not responsible or liable for any such site or content. Nelnet Bank does not endorse or recommend the contents of the third-party sites. Your use of a third party website is subject to their terms of use and privacy policy.

The post Nurturing Student Loan Seeds through Life (and Repayment) appeared first on Nelnet Bank.

But don’t decide to move in with your parents just yet. By establishing smart financial habits in your 20s and 30s, you’ll be well on your way to enjoying a more comfortable lifestyle both today and in the future.

1. Finding a Job

The first step toward financial independence for anyone is finding a source of income. Your salary will determine what you can afford in all other aspects of your life, including where you can live and what kind of lifestyle you can support.

• Be a creative job seeker, and don’t limit yourself to traditional job-search methods. Expand your network, be active on LinkedIn and professional in your use of other social media, and attend industry events.
• Recognize that you may not get your dream job right out of college. You may have to pay your dues with one or more entry-level positions before getting to the position you’ve always imagined for yourself. And that’s OK – as long as you’re building a resume that supports your chosen career path, you’re on the right track.
• It’s important to know your worth and position yourself as a competitive job seeker in your industry. What are your peers making? What’s the average salary in your industry and region? Do your research to educate yourself so that you can intelligently campaign for fair compensation when it comes time to negotiate your salary.

Answers to career-related questions impact your financial future and your budget. Make sure your financial plans evolve to include planning for career development – because your salary and livelihood is a major driver of your financial well-being. For example:

• As you gain experience, you’ll define your career goals to become more specific and learn about new career opportunities. Will you need certification, additional training, or education?
• Will finding your next position require relocating to a different job market, or can you stay where you are and move up?

2. Making a Budget

Once you have a steady source of income, you can create a budget to make sure you don’t overspend. Consider using a free budget worksheet on sites such as Quicken or Mint to make the process quick and easy on your journey to financial independence.

• Calculate how much you spend on set monthly expenses, including rent, car payments, insurance, student loan payments, and utilities.
• Look through your recent bank statements to estimate how much you spend on other expenses such as groceries, transportation, clothing, dining out, etc.
• Subtract your monthly expenses from your monthly net income to determine your monthly spendable income. This is how much money you have to spend on extras each month. Don’t go over this number unless you want to start dealing with the cycle of debt.
• Are you spending more than you make? Then it’s time to rethink your expenses. Where can you cut back? Should you take on a roommate? A second job? Be realistic about your finances and do what you can to avoid relying on credit cards to pay your bills.

With time, the definition of your household may change. You may find you have added income, but you could also have additional expenses and other considerations. Every time you experience a significant change in your household, your job, your location, and your living situation is a time to re-evaluate your budget and financial goals.

3. Choosing Where to Live

Housing costs are generally among the most costly monthly expenses. Each of the decisions below will significantly impact your bottom line.

• Are you willing to relocate for work? While some people are set on living in one particular city, others are more open-minded when it comes to their job search. And, as you work longer and decide what you want to do, the best opportunities may be elsewhere. You’ll need to decide whether to open up your search to other cities to increase your options both in terms of pay and position.
• How much does it cost to live in the city of your choice — and can you afford it? Some cities are notoriously expensive for renters, and it may be difficult to pay the high costs of rent on an entry-level salary. Do a little research and use comparison calculators to weigh the benefits and costs of living in various places.
• Will you live alone or with roommates? Obviously, flying solo can come at a high price, but living with roommates has its own set of challenges.
• Do you want to rent or buy? Buying can be a wise investment, but not all young adults are qualified to purchase a home. If it’s something you’d like to do in the near future, start by building your credit and familiarizing yourself with the real estate landscape in your area.
• As you live on your own (or with roommates or a significant other), you’ll learn more about what sort of environment leads to a better quality of life for you. As life events unfold, you may find that a significant other’s job prospects and career opportunities may begin to factor into your location of residence. Other life changes (divorce, changes to a family member’s health, etc.) can also impact who lives with you and where you decide to live – and this will impact your bottom line.

4. Managing Student Loan Debt

The average student graduates with more than $29,000 in student loan debt. While you may be able to defer your payments while in school or residency, eventually you will have to start tackling those payments. After housing, this is often one of a graduate’s most significant monthly expenses.

• Your post-graduate student loan bill shouldn’t be a surprise. Know how much you’ll owe – and have an idea of how you’ll pay for it – before you even start college.
• Learn more about the federal loan repayment plans for which you are eligible and what your private loan payments and interest rates are at this time. Check your private loan statements or your lender’s website for this information.
• Explore student loan refinancing. For most people, student loan repayment stays around for a while – but it doesn’t have to keep the same form. Once you’ve been out working and living in the “real world” for a while, your situation may change, and refinancing your student loans can help you take advantage of some positive changes to your situation. If you’re making the smart financial decisions we at Nelnet Bank know you can, your credit worthiness, credit score, and income have all been taking an upward turn. Consider whether refinancing your federal and private student loans can make your interest rate and monthly payments lower. With Nelnet Bank, there are no application or origination fees and you could end up saving yourself thousands of dollars over the life of your loan – or ridding yourself of student loan debt sooner than expected.

5. Planning for the Future

While at times it may be difficult to imagine life beyond your next paycheck, it’s critical to think about your future financial independence.

• Family planning – Do you have plans to get married, start or expand your family? It’s a good idea to start saving for those milestones early on. If you haven’t found the right person, but you know it’s a priority for you to buy a home, find a partner, or start a family, there’s no reason to wait to prepare financially. Why not make it easier on yourself later by planning now for the future you know you want?
• Retirement savings – Speaking of planning now for the future you want: for millennials, the age of 65 may seem like it’s a long way off but it’s getting closer every day. Starting as soon as you have the option to save toward your retirement has a huge positive impact on your ability to save enough for retirement. But what do you do each time you get a raise or bonus? Do you increase your contribution toward retirement and diversify the types of accounts you invest in – or do you find new ways to spend the additional money? You can guess what we recommend.
• Insurance – You’ve enjoyed the benefits of your parents’ insurance policy for most of your life, but being an adult means buying your own health, car, and home or renters insurance. When you first start out, you won’t own as much of value to insure, but as you continue to work, you’ll acquire a nicer car, a bigger home, better furnishings, and simply more stuff. Plus, the larger income you’re making will be harder to replace should something happen that prevents you working to pay your bills. Insurance is something that you’ll need to continue to evaluate as your assets, income, and dependents change.

Complete financial independence after college may seem intimidating at first, but it’s also exciting. Embrace the challenges, but reach out for help when you need it. As you may have noticed, financial literacy is an ever-changing learning process because life is full of constant change. It’s always good to reevaluate your goals, your situation, and your budget on a regular basis to make sure you’re on the right track.

Nelnet Bank does not provide legal, investment, tax, or financial advice. This page and the information contained herein is for informational purposes only. This content is not meant to address the circumstances of any particular individual. Nothing contained in this article constitutes a recommendation or endorsement by Nelnet Bank. For specific advice about your unique circumstances, consult with a qualified professional.

From time to time, articles may provide hyperlinks to web pages operated by third parties. When you click on these hyperlinks, you will be leaving Nelnet Bank’s website. Nelnet Bank has no control over such sites or their content, and is not responsible or liable for any such site or content. Nelnet Bank does not endorse or recommend the contents of the third-party sites. Your use of a third party website is subject to their terms of use and privacy policy.

The post Financial Literacy for Millennials: Tips for Making Smart Financial Decisions in Your 20s and 30s appeared first on Nelnet Bank.

Student Loan Debt

While I am no longer handling student loan debt, there was a time when I did. While studying for my bachelor’s degree, I borrowed money to help pay for tuition, fees, and housing expenses. Fortunately, I was able to work part-time in school, and full-time during the summers. When I graduated, I had what I considered a modest level of debt.

The Realization of Repayment

After graduating, I remember receiving my student loan statement and payment slips in the mail. It had been several months since graduation. I hadn’t thought much about handling my student loan debt. Because I deferred my principal and interest payments while in school, I didn’t know exactly how much I owed. I didn’t even know when my payments were due. I can still remember looking at my loan statement and seeing how much I owed and the monthly amount due. Then, I counted the number of payment slips. I realized it was going to be quite some time before I could pay my loans off in full.

Reality set in. Having taken some finance classes while in school, I knew the high interest rates on my loans would cause interest to accrue rapidly on the remaining principal balance. The longer it took me to pay off my loans, the more it would cost. So, I sat down and developed a plan. I set up a monthly budget to manage my finances and pay off my student loans as soon as possible. This was the start of getting my financial house in order.

Discovering Repayment Options

Since that time, student loans, both federal and private, have greatly evolved. There are now many more repayment options available to students and parents to help them handle student loan debt. These include various income-driven repayment plans, federal loan consolidation, and private student loan refinancing. Each of these options has distinctive features and eligibility requirements, so it makes sense to compare them to one another to see if any meet your needs. You can learn more about federal student loan repayment plan options by visiting the Department of Education’s Federal Student Aid website.

Making a Repayment Plan

Creating a solid financial plan and sticking to it is an important part of any person’s financial well-being. If you haven’t already done so, I highly encourage you to review your financial situation, create a plan, and set a monthly budget.

Once you’ve created your plan, be sure to review it at least once per year, as your goals and/or financial situation may change. This way you can make any needed adjustments to ensure you stay on track. By keeping your financial house in order you can increase the likelihood of achieving financial success.

Nelnet Bank does not provide legal, investment, tax, or financial advice. This page and the information contained herein is for informational purposes only. This content is not meant to address the circumstances of any particular individual. Nothing contained in this article constitutes a recommendation or endorsement by Nelnet Bank. For specific advice about your unique circumstances, consult with a qualified professional.

From time to time, articles may provide hyperlinks to web pages operated by third parties. When you click on these hyperlinks, you will be leaving Nelnet Bank’s website. Nelnet Bank has no control over such sites or their content, and is not responsible or liable for any such site or content. Nelnet Bank does not endorse or recommend the contents of the third-party sites. Your use of a third party website is subject to their terms of use and privacy policy.

The post Get Your Financial House in Order appeared first on Nelnet Bank.

After submitting my loan application, to my surprise, I wasn’t offered the lowest rate. “But why?” I asked the mortgage loan officer. I had never missed a payment on any of my loans or credit cards. Isn’t that what they should be concerned about? They told me my credit score wasn’t high enough to warrant their lowest rate.

After some research, I discovered the quality of the applicant’s credit score is one of the most important factors lenders consider when deciding whether to extend credit. It’s also taken into account when deciding what terms and rates are offered. And, that a person’s credit report determines the person’s credit score.

What is a credit score?

A credit score is a numerical representation of your credit risk. That essentially means how likely you are to pay back the loan. Credit scores range from 300 to 850, and are used by lenders to easily and objectively evaluate your credit risk. Higher scores usually mean less credit risk. Most lenders require a minimum credit score before they offer you a loan. They also create credit score tiers used to determine what interest rate they offer. That’s why you should have as high a credit score as possible before applying for any loan, regardless of type.

What can you do to raise your credit score?

The first thing to know is it takes time to improve your credit score. While you can ruin your credit score very quickly, it can take several years of good behavior to increase it. This is especially true if you have had a credit mishap like a missed payment. Below are six suggestions to help you improve (or maintain) your credit score.

1. Review your credit report annually. At least once per year, check your credit report for accuracy, and ensure that nothing is on it that shouldn’t be. Reviewing your credit report can also help you protect yourself from identify theft , which could ruin your good credit. If you have any questions about your credit report, or wish to dispute an error, immediately contact the credit reporting agency that issued the report. Tip: You can get one free credit report per year from each of the three major credit reporting agencies simply by visiting www.AnnualCreditReport.com and requesting your free credit report. Unfortunately, you won’t find your credit score on your credit report. Some credit card providers have partnerships with one of the three large credit bureaus to provide free credit scores to their customers. Check to see if your credit card provider has such an arrangement.
2. Pay your bills on time. This may seem like a no-brainer, but it’s important to make your payments on time, as any late or missed payments are likely reported to the credit bureaus. If you’ve missed a payment, get your account current and stay current. The longer you go without missing a payment, the more your credit score may increase.
3. Pay down your credit card balances. When your credit cards have high balances, it gives you a high debt-to-credit ratio (also known as utilization rate) and can signal credit providers and lenders that you are facing financial difficulty. Tip: Don’t move your balance from one credit card to another as this won’t help.
4. Only apply for a new loan or credit card when you truly need one. When you apply for a new credit card, you add a “hard inquiry” to your credit report, which causes your credit score to drop slightly in the short term. You may also be adding more new debt than you can afford to repay, both of which could negatively impact your credit.
5. Enroll in automatic payments. Enroll in automatic payments through your credit card and loan providers to have payments automatically debited from your bank account. Most student loan providers offer an interest rate discount for automatic payments, so there is that added benefit as well. Tip: When setting up automatic payments on credit cards, if you choose to make only the minimum required payment, you could be rolling over large balances each month and get hit with high interest charges.

How Does It All Help?

Having a clean credit report and a high credit score might help you in many ways, including lowering the cost of borrowing, obtaining insurance, setting up housing utilities, getting a job offer, and more. If you are having trouble making your payments, be sure to speak with your credit card provider or lender before you miss a payment. It’s in their best interest to work with you to find a mutually agreeable solution, so you may be able to work out an arrangement that meets your needs.

Nelnet Bank does not provide legal, investment, tax, or financial advice. This page and the information contained herein is for informational purposes only. This content is not meant to address the circumstances of any particular individual. Nothing contained in this article constitutes a recommendation or endorsement by Nelnet Bank. For specific advice about your unique circumstances, consult with a qualified professional.

From time to time, articles may provide hyperlinks to web pages operated by third parties. When you click on these hyperlinks, you will be leaving Nelnet Bank’s website. Nelnet Bank has no control over such sites or their content, and is not responsible or liable for any such site or content. Nelnet Bank does not endorse or recommend the contents of the third-party sites. Your use of a third party website is subject to their terms of use and privacy policy.

The post What You Can Do to Improve Your Credit Score appeared first on Nelnet Bank.

After an assessment, you can begin to find ways to improve your financial well-being in the upcoming year. In order to be prepared for a bright financial future in the New Year, it’s important to set your budget, contribute to your savings, and pay down any high interest debt.

Now is the Time for Budget Planning

Do you know how much you spent this year on utilities, groceries, housing, or entertainment? Once you have an idea of how much you’re spending on certain categories, you can estimate your projected expenses each month and use budget planning to find places to cut expenses.

There are a number of apps that can assist you with tracking and categorizing your spending, but you can also do it on your own by entering your expenses into a spreadsheet. If you use your debit card for most purchases, you can use your online bank statement to help you identify your expenses. Don’t forget to account for the cash you spend if you want a true picture of all your expenses.

When setting your budget, you’ll likely have fixed and recurring expenses for housing, transportation, student loans, utilities, and other similar areas. Then, you’ll need to set an amount for variable expenses like groceries, clothing, and entertainment.

Knowing your income each month will help you set goals. If you have a steady job, you probably have a consistent weekly or monthly income and can use that to start your budget. Your monthly expenses should be less than your available income each month.

If this is not the case, you can review your expenses to identify areas to trim back and reduce your spending each month. Once you’ve created a budget, try to stick to it as best you can each month. That way, you’ll stay on track and not get into a position of having to use credit cards or possibly getting behind on some of your bills.

Save, Save, Save – The Sooner You Start the Better

Even if you’re in your 20’s, it’s never too early to include retirement in your budget planning. If you start with small contributions, you can make it a habit and priority. If your employer offers a 401(k) plan and matches your contributions, take full advantage of the opportunity for free money.

It’s also important to set aside funds for unexpected expenses or emergencies. A good rule of thumb is to have three to six months of income in a savings account that you can access for those unplanned events. Not only will this give you peace of mind knowing that you have your own safety net, but it will help you avoid putting large charges on a credit card that will likely incur high interest fees.

Pay Down High Interest Rate Debt

Whether you’re paying off a student loan, a car, or a credit card balance, it’s always an accomplishment to know you have extra income to go toward something else (like saving).

If you can allocate some extra resources to pay down your debt, it’s generally best to start by tackling the account with the highest interest rate. That might be a credit card balance that seems like it never gets smaller because of the interest that keeps adding up each month.

Another goal you might have is to simply pay something off with a smaller balance just to get that sense of accomplishment and then move that money toward paying down other debt. It might make sense to look at debt consolidation or refinancing where you may benefit from paying off higher rate loans or debt with a lower interest rate personal loan. This is especially helpful with high rate credit cards. All of us at Nelnet Bank wish you a successful and prosperous new year!

Nelnet Bank does not provide legal, investment, tax, or financial advice. This page and the information contained herein is for informational purposes only. This content is not meant to address the circumstances of any particular individual. Nothing contained in this article constitutes a recommendation or endorsement by Nelnet Bank. For specific advice about your unique circumstances, consult with a qualified professional.

From time to time, articles may provide hyperlinks to web pages operated by third parties. When you click on these hyperlinks, you will be leaving Nelnet Bank’s website. Nelnet Bank has no control over such sites or their content, and is not responsible or liable for any such site or content. Nelnet Bank does not endorse or recommend the contents of the third-party sites. Your use of a third party website is subject to their terms of use and privacy policy.

The post Planning for the New Year appeared first on Nelnet Bank.

If you attended college in the fall, you may have relied on financial aid to help cover your education expenses. With a new semester about to begin, you may want to reconsider your options. Many students still owe a balance from fall semester. Meanwhile, others just realized they may need additional funding to help pay for the upcoming semester. Use this time to take stock of your financial resources and make a plan to ensure everything is covered.

Do you still owe a balance on outstanding charges from your fall semester?

You may be required to fully satisfy outstanding charges before you can complete your enrollment for the next semester. Make sure you take care of the previous balance as soon as possible. That way, you avoid any potential delays with your upcoming enrollment. If you didn’t have enough financial aid or personal resources to pay your prior semester’s bills in full, consider a private loan to help cover what you still owe.

Did you apply for financial aid either before or during the previous semester?

It’s always a good idea to apply for financial aid by completing the Free Application for Federal Student Aid (FAFSA^®) form, even if you don’t think you’ll qualify. Not everyone qualifies for grants or other “free” money. But, you may qualify for federal student loans, like unsubsidized loans, which are not based on financial need. You can still complete the FAFSA form, even after the school year has started. It’s free and doesn’t take much time, so it’s worthwhile to submit. That way, you’ll know you’re not missing out on any financial aid programs.

What are your education expenses going to be in the upcoming semester?

By January, you should have an idea of your direct college expenses are for the upcoming semester. These education expenses including tuition, books, housing, and other costs. Do you have financial aid that pays for everything, or do you still have a gap where additional money is needed? Make sure you look at your full semester and anticipate all of your expenses. Set a budget so you’ll know exactly what your expenses are. Make sure to keep track of what types of income or financial resources can cover those expenses. Use all the financial aid resources available to you, including federal loans, to help pay your costs of attending college. If you still find yourself in need of additional money, you can explore the possibility of a private student loan and find a solution to help cover your college expenses.

When should you apply for next school year’s financial aid?

In case you missed it, you can now complete the FAFSA starting on October 1 for the following school year. You may only be halfway through this school year, but it’s already time to submit your FAFSA form for the next. With the earlier submission date for the FAFSA, it’s critical to get your application in as quickly as possible so you don’t miss any priority deadlines for state grant aid or other types of aid that may not be available if you apply too late.

Remember, now is the time to make sure you have everything in order for the current semester and for the next school year.

Nelnet Bank does not provide legal, investment, tax, or financial advice. This page and the information contained herein is for informational purposes only. This content is not meant to address the circumstances of any particular individual. Nothing contained in this article constitutes a recommendation or endorsement by Nelnet Bank. For specific advice about your unique circumstances, consult with a qualified professional.

From time to time, articles may provide hyperlinks to web pages operated by third parties. When you click on these hyperlinks, you will be leaving Nelnet Bank’s website. Nelnet Bank has no control over such sites or their content, and is not responsible or liable for any such site or content. Nelnet Bank does not endorse or recommend the contents of the third-party sites. Your use of a third party website is subject to their terms of use and privacy policy.

The post It’s Time to Make Sure Your Finances Are on Track appeared first on Nelnet Bank.

1. Set Your Budget

   The best thing you can do is plan your spring break trip a few months in advance. This will not only give you ample time to get everything organized, but you’ll have more time to save and plan for your trip. Determine what your budget is and let that guide you’re planning. Then, take the time to research destinations and estimate the costs for each option. Transportation and lodging will likely make up the bulk of your cost, but don’t underestimate your other expenses during your trip. You may find that some trips are just too expensive based on your resources and budget.

2. Split the Bill

   If you’re driving to your destination, ride with friends and split the cost of fuel. Additionally, you may be able to save on hotel costs by sharing a room with friends. Those extra savings can go a long way and will give you more funds for other activities during your trip.

3. Borrow – Don’t Buy

   Create a packing list and figure out if there are items you don’t have but know you will need. It’s a pretty safe bet that buying something will be more expensive at your destination. Try to borrow anything you might need from friends or family, especially if it’s an item you’re unlikely to use after the trip. Try your best to anticipate everything you’ll need during your trip and pack accordingly.

4. Find Fun Closer to Home

   Although it sounds great to take a big trip somewhere far away, you can have just as much fun trying new things closer to home. Remember, the entire purpose of spring break is to take a break from studying, relax, and enjoy yourself. Sometimes, that might simply be going home to see family and friends. And the best part of that kind of spring break is you won’t have to spend much money at all! Check out tourist destinations in your current city to explore new activities. You’d be surprised at how many things are nearby that you may have overlooked previously. Get creative and enjoy yourself.

5. Pay as You Go

   Ideally, you want to be able to pay for your spring break trip with savings and not use high interest rate credit cards or even student loans to fund your adventure. Again, try to set a budget for your trip and then keep your spending within your budget. Don’t be tempted into spending more than you have or feel pressured into trying to keep up with someone else’s crazy spending sprees. Spring break can create memories that last a lifetime, but you don’t want create a financial burden that lasts a lifetime either!Enjoy your spring break and the time away from your classes. Remember to be safe and protect yourself and your belongings while traveling. A little planning and budgeting will help you have a great time and feel good about your finances when you return.

Nelnet Bank does not provide legal, investment, tax, or financial advice. This page and the information contained herein is for informational purposes only. This content is not meant to address the circumstances of any particular individual. Nothing contained in this article constitutes a recommendation or endorsement by Nelnet Bank. For specific advice about your unique circumstances, consult with a qualified professional.

From time to time, articles may provide hyperlinks to web pages operated by third parties. When you click on these hyperlinks, you will be leaving Nelnet Bank’s website. Nelnet Bank has no control over such sites or their content, and is not responsible or liable for any such site or content. Nelnet Bank does not endorse or recommend the contents of the third-party sites. Your use of a third party website is subject to their terms of use and privacy policy.

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Treat Yourself

The first thing that comes to everyone’s mind when spending tax returns is to blow it all on a vacation or buying something nice. Spending a little on yourself is totally fine, but if you can harness some self-control and apply the rest of the return wisely, your future self will be thanking you ten times over.

Rainy Day Fund

A great way to use newfound cash is to build an emergency fund. It’s impossible to know when unfortunate circumstances will occur, so it’s essential to have some funds set aside to deal with whatever these problems may be. A solid emergency fund should hold at least six months of savings, so tax refund money is a great way to contribute.

Invest it

Another smart way to use tax refund money is to invest it. Making your money work for you is one of the best ways to grow income, without having to put a whole lot of work in. If you’re just getting into the investing world, there are many tools available to help you make smart decisions with your money.

Settle Your Debts

One of the best things you can do with a tax refund is to pay down debt. Now, you don’t have to put all of this towards debts, some of it can still pay for that trip to Hawaii or a new pair of shoes. But allocating a portion of the return to pay off your loans can decrease the life of your loan and help you get out ahead of your payments.

Refinancing your loans is a great way to simplify them into one monthly payment, and it may save you money in the long run. When you refinance student loans with a company like Nelnet Bank, a lower interest rate and flexible monthly payment terms may help put you on the fast track to debt freedom. Refinancing your federal student loans into a private loan may cause you to lose certain benefits.

However you plan to spend your tax refund this year, do it wisely with the future in mind. Going on a shopping spree may feel pretty good at the time, but finally being rid of debt or having a safety cushion tucked away can feel a whole lot better.

Nelnet Bank does not provide legal, investment, tax, or financial advice. This page and the information contained herein is for informational purposes only. This content is not meant to address the circumstances of any particular individual. Nothing contained in this article constitutes a recommendation or endorsement by Nelnet Bank. For specific advice about your unique circumstances, consult with a qualified professional.

From time to time, articles may provide hyperlinks to web pages operated by third parties. When you click on these hyperlinks, you will be leaving Nelnet Bank’s website. Nelnet Bank has no control over such sites or their content, and is not responsible or liable for any such site or content. Nelnet Bank does not endorse or recommend the contents of the third-party sites. Your use of a third party website is subject to their terms of use and privacy policy.

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5 Holiday Spending Tips

As you prepare to enjoy the holidays, these tips can help you avoid spending traps. Here’s how you can ring in the New Year without a mountain of debt and holiday spending regret.

1. Don’t use student loans to pay for a holiday trip or gifts.
   Using a student loan to finance a trip over the holiday break or a shopping spree might be tempting. But remember, your student loan is intended for educational expenses. Plus, you really don’t want to take on student loan debt for a short term benefit that you’ll be paying back for years with interest.
2. Avoid paying for everything with a credit card.
   Much like using a student loan, you’re better off to simply pay with cash and avoid using a credit card for holiday expenses. Credit cards will typically have high interest rates, especially if you carry a balance. If you can’t pay cash for your holiday purchases, it’s probably not worth the cost.
3. Don’t feel obligated to buy gifts for all your friends and family.
   If you’re a student, your friends and family understand that you’re on a tight budget and may not have the resources to buy gifts for everyone. Simply spending some time with friends and family will likely be more meaningful than any gift you could purchase at the mall. Find ways to do small but meaningful things that will be appreciated.
4. Don’t forget to set a budget or spending limit.
   It’s important to know in advance what you can reasonably afford to spend. It’s a good idea to set a budget for yourself and cap your spending at a certain dollar amount. That will help keep you on track and also let you plan better for the people on your gift list, and possibly help you cut back on the number of people on your list. Some families draw names for gifts or find other creative ways to help family members keep their expenses down and enjoy their time together.
5. Avoid paying for gift wrapping or expensive gift bags and cards.
   It’s convenient to drop your gifts off and have someone else wrap them. However, there’s a cost for convenience and it simply might not be worth paying for. Buying wrapping paper after the holidays is a great way to save money and plan ahead for the next year. Plus, if you plan and don’t make all your gift purchases at once, you won’t be bogged down wrapping a lot of gifts at the last minute. Often, a card and a gift bag may actually cost more than the gift you’re giving.

With a little discipline and planning, you can set yourself up for a fun-filled holiday season without incurring the stress of spending too much or putting yourself into debt. Remember to enjoy the holidays and the time spent with friends and family. Many times, the best gifts are the ones that don’t cost anything at all.

Nelnet Bank does not provide legal, investment, tax, or financial advice. This page and the information contained herein is for informational purposes only. This content is not meant to address the circumstances of any particular individual. Nothing contained in this article constitutes a recommendation or endorsement by Nelnet Bank. For specific advice about your unique circumstances, consult with a qualified professional.

From time to time, articles may provide hyperlinks to web pages operated by third parties. When you click on these hyperlinks, you will be leaving Nelnet Bank’s website. Nelnet Bank has no control over such sites or their content, and is not responsible or liable for any such site or content. Nelnet Bank does not endorse or recommend the contents of the third-party sites. Your use of a third party website is subject to their terms of use and privacy policy.

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