Most law students accrue substantial debt, especially those that attend private universities – upwards of $83,000 on average, in 2006, according to the American Bar Association. 

Here are a few tips to help you make prudent choices while you are in school so that you will not be forced to live like a student after you graduate.

• Read the fine print for all applications before you sign, including those for student loans and credit cards!
• Familiarize yourself with all paperwork your parents may have completed on your behalf!
• Know the facts about your financial aid

1. Type of aid: loans, grants or scholarships
2. Who is your lender?
3. What fees, if any, are you responsible for?
4. When is repayment required?
• Borrow only what you need
• Establish a spending plan and stick to it
1. Track your expenses!
2. What are your fixed expenses?
3. Which expenses are one-offs (one-time, once a year, once a semester)?
4. What resources are/will be available to you?
5. How much discretionary income do you have?
• Limit your expenses
1. Get a roommate!
2. Comparison shop!
3. Buy used books!
4. Pack a lunch!
5. Use your credit card sparingly, if at all.
• Protect your credit
1. Familiarize yourself with your credit report!
2. Pay your bills on time!
3. Limit the number of credit card accounts!

*** Common terms you should know

• Lender – the company or organization that funds the loan
• Guarantor – the company or organization that pays the lender in the event that the borrower defaults on the loan
• Servicer – the company or organization that collects loan payments on behalf of the lender

Useful links:

http://students.studentdebthelp.org/

http://salliemae.com/content/landing/planner/eip.html

https://studentaid2.ed.gov/getmoney/pay_for_college/cost_35.html