An education loan is a serious financial and legal obligation. The student must plan for repayment carefully, with a budget based on expected income.

Assist the student in estimating monthly living expenses (education loan payments, housing, food, clothing, insurance, and transportation) and compare them to his/her expected monthly income. The student may find it necessary to consider other options in an effort to cover monthly expenses such as living with a roommate, loan consolidation, public transportation, etc. Planning for the future is one of the first steps in becoming a responsible adult.

Provide the student with a personal budget worksheet to compare monthly income and expenses. Emphasize to the student that education loan payments are a fixed cost and should be given the same consideration as other fixed monthly expenses such as rent, utilities, etc.