Each week, we are sharing a financial wellness tip to help you make the connection between financial management decisions, your overall wellness, and student success. Money touches every aspect of our lives, and a lack of financial literacy can cause unnecessary stress and negatively impact our mental and physical health.
Credit and Student Loans: Establishing and maintaining good credit is important for your financial wellness! One great way to positively build your credit score is to utilize your federal student loans.
Having a loan in addition to other forms of credit, such as a credit card, will diversify your credit mix. Although having the loan plays a small part in your overall credit score, paying your loans on time and consistently is a great way to increase your credit score.
Hint: Start paying off your federal student loans before you graduate! Federal student loans do not have a penalty for paying early, and making a payment does not mean you have to pay every single month. Making small payments on either the balance or accrued interest will show up on your credit report and be counted as on-time payments, which will improve your credit history. Plus, you’ll be closer to paying off your student loans when you graduate!
Visit studentaid.gov to view your federal student loans, make a payment, estimate your monthly payments once you graduate, and complete Financial Awareness Counseling. Remember: Just a $20 monthly payment can make an impact and is a first step in your good credit journey!