Managing back-to-school expenses is a rational process when needing to borrow: 1) Finance qualified expenses with government backed student loans. 2) Shop retail lenders for revolving credit accounts, and installment loans to pay for unqualified expenses.
Qualified Expenses: Tuition, Fees & Books
Student loans are standardized – government backed loans that can only be used for qualified expenses. They offer borrowers tax-deductible interest, and deferred repayment schedules.
Unqualified Expenses: Room & Board, Insurance, Transportation
Credit cards offer students a valued convenience when financing inexpensive, reoccurring unqualified education expenses.
Unsecured personal loans, typically have fixed interest rates, terms, principal amounts, and monthly payments. Features that could possibly make high cost unqualified education expenses, and much needed credit repairing debt consolidation decisions more affordable when financed with an unsecured personal loan.
Learning how to manage the process of paying for back-to-school expenses can be its own valued lesson.