Borrowing and Managing Debt

Tips for borrowing:

Only borrow what you need
- Remember that every dollar that is borrowed will be required to be repaid in the future, plus interest. Calculate how much of your school-related expenses can be paid by other sources (scholarships, payment plan) and then apply for a loan for the remaining amount.
Make monthly payments while in school
- Paying off the interest that accrues each month while in school can amount to large savings after you graduate. Some lenders offer lower interest rates for students who make monthly payments while in school
Apply with a cosigner if possible
- Applying with an eligible cosigner can often help students be approved for a lower interest rate. Also, having a cosigner can help students who do not have adequate credit history be approved for a loan who would not otherwise be eligible.
Compare interest rates of lenders before applying
- Find a loan and interest rate that is the best fit for you. If you apply with multiple lenders, remember to cancel loans that you do not intend to use.

Tips for managing debt:

Students should avoid or minimize debt whenever possible. While this advice is generally applicable, potential borrowers at SBTS should know that mission organizations and churches will sometimes refuse to hire candidates with too much debt. SBTS provides the following resources for students to plan and manage their debt.

Christian View of Debt

How Should Christians View Debt? – Christian Financial Advisors Network

The Bible’s Three Big Lessons on Debt – Tim Challies

Cost Calculators

College Cost Comparison Tool – MEFA

Student Loan Repayment Calculator – MEFA

Planning Your Borrowing

Estimated Income by Degree – U.S. Bureau of Labor Statistics

Borrowing Tips and Important Terms – MEFA

Tips for Borrowing Money for College While Minimizing Student Loan Debt – PNC

Student Loans: Stop Stressing, Start Planning – PNC

Managing Debt while in School