For many students and their families, a college education would not be possible without student loans. Different types of student loans exist and it’s important to understand the differences and details. Being informed can help you avoid costly mistakes that can affect your financial future.

For starters, when you take out a federal student loan, you are required to repay the loan, including fees and interest, when you complete your program or stop attending school at least half-time. Student loan payments are typically deferred as long as you are attending college at least half-time. After you leave school, some loans offer a grace period before you’re required to begin repayment. Be sure to check enrollment requirements as dropping below half-time could mean that your repayment period starts earlier than you expected.

1. Know the difference between subsidized and unsubsidized loans. 
Payment of both loan types is deferred while you attend school at least half-time. The government pays the interest on your subsidized loan while you are in school, but the interest on the unsubsidized loan is your responsibility. Making payments on the accruing interest on an unsubsidized loan can save money on interest. If you can, make payments while you’re attending school.

2. Look for outside scholarships to help pay for college. 
Private donors and many organizations offer millions of dollars in scholarships each year. Investigating your options early may mean less borrowing for college. You can find information about scholarships by logging into iGrad at www.igrad.com/Schools/Berkeley

3. Know how much you’re borrowing—and how much you owe. 
It’s important to monitor how much you borrow. Keep in mind the length of your program of study and other expenses you may incur while studying. Maximum loan amounts may apply. You can monitor your borrowing by going to www.nslds.ed.gov or looking up the information on your loan servicer’s website.

4. Know your loan servicer. 
If you take a student loan, you will be assigned a loan servicer. Your loan servicer is the company that will be collecting your monthly payments once your repayment period begins. If you do not know the name of your servicer, you can look up that information by going to nsldsfap.ed.gov. You will need your FSA user id and password, social security number and date of birth.

5. Make payments while in school. (Even small payments.) 
Making small payments while you’re still in school will help you pay down your loans, which will save you money in the long run.

6. If you move, change your email or phone, notify your loan servicer. 
Make sure this information is always current so you do not miss key communications. It only takes a quick phone call to your servicer.

7. Set up an online account. 
An online account with your loan servicer is a good way to track your loan balances, payments, and other activity, as well as an easy way to update your account information.

8. Budget. 
Creating a monthly budget is a great idea to help you monitor and control your spending—before, during, and after your years in college. Changing your spending habits early can translate into less borrowing for college and make repaying student loans easier.

9. Sign up for iGrad. 
Berkeley College offers students access to iGrad, a personal finance-learning tool that can help you manage many aspects of your finances, including loans, budgeting, credit, and more. You can sign up for iGrad by going to www.igrad.com/Schools/Berkeley. Create an account and download your loan information into iGrad.

10. Stay informed. 
In addition to providing career-focused education, Berkeley College is committed to helping students manage their finances efficiently and responsibly. If you have questions, contact Berkeley’s Student Financial Literacy office for assistance at StudentFinanciaLiteracy@BerkeleyCollege.edu or by phone. In New York, call 212-986-4343, ext. 4560, 4565, 4566, or 4567. In New Jersey, call 973-278-5400, ext. 4562 or 4564.

The views and/or opinions in this article are those of the individuals interviewed. The academic achievements and/or employment outcomes described in this article are specific to each individual and are not a guarantee of similar results for past or current students. For up-to-date and detailed information, please visit BerkeleyCollege.edu and view our catalogs at BerkeleyCollege.edu/publications.