3 Common Financing Mistakes of Students

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3 Common Financing Mistakes of Students

Students who borrow money for their bootcamp tuition often times don't understand the pros and cons of their choices - because they're not fully informed about how to use their borrowed money efficiently. Skills Fund is all about making sure our borrowers are as financially literate and empowered as possible! We've gathered up a few tips: here's what you should avoid doing after you take out any type of loan.

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Mistake #1: Paying Late or Missing Payments

One way to avoid making late payments is to immediately enroll in AutoPay for your loan balance. That way, there's no way you can miss a payment. If you happen to forget a payment, pay it off as soon as possible. The more time it takes for you to make up the missed payment, the more it dings your credit score. One tip we like to use: set up a recurring calendar event for your payment due dates so you can remember to pay - or, use it as a reminder to make sure that your automatic payment was successful.

If you run into an issue making a payment, contact your loan servicer as quickly as you can. For Skills Fund loans, your servicer is Aspire Resources.

If you miss multiple payments and go into default, your wages could be garnished and your tax refund withheld.

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Mistake #2: Not Knowing The Exact Numbers Before Applying

We all know that student loans can be tricky. If you apply for and accept a loan without looking at the fine print, you could face some really high costs of financing (APRs) and unfavorable loan conditions (for example, prepayment penalties.)

A quick solution to this is to ask questions, ask questions, ask questions! If there's something you need clarification on, or if something seems fishy, ask about it. Next up: read your disclosures (completely!) before accepting a loan.

Skills Fund is on a mission to take the cloudiness out of student financing – so we're committed to providing students with all the deets before you even click "submit" on your application. No trickery, no surprises – because you don't deserve to be taken advantage of!

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Mistake #3: Not Knowing Your Loan Balance

You'd be surprised at the number of students who do not know how much they owe on their loans. Establish a time once every month (at least!) to log into your account and look at your finances. Before you plan an international trip, or buy a new car, keep your debt in mind. You might owe more (or less!) than you think.

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Skills Fund: Your Partner in Transparency

Skills Fund's mission goes beyond helping students find and pay for immersive bootcamp programs. We want to empower students with the ability to judge and make decisions about their financing, credit health, and future debt. That's why we are a little different from the rest – because we put students first.

Ready to find a new future?

Skills Fund is partnered up with the best bootcamps in the United States. Dive into your new education today.

Originally published July 26, 2017. Updated May 24, 2019.