Pushpa Wood, director of the financial education and research centre at Massey University gives advice on getting a student loan.

  1. Talk to careers advisers and family before deciding which course to do.
  2. Consider how you can repay debt before you decide how much to take.
  3. Accept you might have to make sacrifices to borrow less.
  4. Consider getting a part-time job while studying to help with costs.
  5. Work out a budget and stick to it – find out how much you need to earn if you are flatting.
  6. Look at whether you could pay an extra $10 or $15 a fortnight to pay it off faster.
  7. Or, keep paying the minimum and put savings into another account and at the end of the year see if you can pay a lump sum.
  8. If you are doing a qualification simply for pleasure, try to pay for it out of the money you have rather than borrowing.
  9. Borrow for your needs not for your wants.
  10. Be careful in the study you choose and the reasons you are choosing that course.

Source: The New Zealand Herald

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