Navigating Student Loans as a First Time Borrower: Dos and Don’ts for Success
Dos and Don’ts for Freshmen: Navigating Your First Year with Student Loans
Congratulations on starting this exciting chapter of your life! While starting college can be exciting and new, remember that it is also normal to be confused and have questions – especially if you are financing your education through loans. If you have student loans, knowing how to manage these loans will help you set yourself up for financial success!
To help you prepare for your first year with student loans, we’ve prepared some dos and don’ts to help you navigate your first year with student loans.
Do: Visit your school’s financial aid office
Financial aid offices are on college campuses with the #1 goal of providing information and support to students that need financial assistance. While the office can help you manage your current loans and expenses, there are also opportunities like scholarships and grants that can help lower the amount of money needed on a loan. Ascent also has dedicated student loan specialists to help guide you through applications and answer any questions you may have; additionally, Ascent borrowers receive access to AscentUP, with unlimited access to budgeting resources to support you on how to pay back your loan. At Ascent, we are committed to your success and give that extra help to our borrowers every step of the way!
Don’t: Pass up scholarship opportunities
Don’t overlook scholarships, regardless of where you are in your education! Did you know that 1.7 million private fellowships and scholarships awarded every year? Scholarships can significantly reduce tuition costs or any other financial expenses that go towards your education, such as textbooks and transportation. Ascent has awarded over $332,000 in scholarships to date, including no-essay applications that may help you cover some school-related expenses – and are not just for Ascent borrowers. Don’t forget – scholarships should not only be on your radar as you enter college, but the entirety of your college career! Take a look at our active scholarships now: Ascent Scholarships.
Do: Budget and keep track of your expenses
Budgeting and tracking your expenses are crucial to make sure you are spending and saving money appropriately. Tuition, living expenses, social outings, credit card payments, and any other expenses can pile up quicker than you may expect. To keep your costs down, take every opportunity you have when it comes to student discounts and deals; which make it easier to save even more money as a student! When you set a budget, you can avoid unnecessary debt and financial stress. Additionally, you can prioritize spending your money on your essentials like food, rent, textbooks and other supplies, while also putting aside money for savings and emergencies.
Don’t: Wait until graduation to think about repayment
Do not procrastinate or push off thinking about how you are going to pay back your loans! Keep track of your payment due dates, add them onto your digital calendar or reminders list, or write it down. As a borrower, you can review the repayment option you selected in your documents which are available in your Ascent Dashboard under Repayment Schedules. You can also consider setting up automatic payments. When you are enrolled in automatic payments, you take out the extra stress every month of remembering to make a payment. Instead, the payment is automatically deducted from your bank account.
Additionally, Ascent offers borrowers a 0.25%-1.00% discount on every payment when signed up for autopay*. That’s right, we pay you to make smart financial choices. Don’t forget that when you have some extra cash (like a signing bonus or holiday gift!) to contribute to your loan for early payments, or to pay off your loan earlier than expected, it will always benefit you – with Ascent there are no application, origination, disbursement or early repayment fees. Just remember to keep in regular communication with your loan servicer to stay informed on any changes or updates relating to your loan or payments.
Do: Apply for FAFSA before any student loans
FAFSA opened on December 1st for the 2025-2026 academic year and helps determine your federal aid eligibility. Regardless of if you think you will be eligible – fill it out. Applying for FAFSA creates opportunities for potential financial assistance that can significantly reduce the cost of your education. This includes Pell Grants, federal student loans, and work-study programs. Additionally, make sure to submit your FAFSA before you apply for private student loans to see what you can receive first.
As you make your way through this new chapter of your academic journey, remember that the choices you make in your first year can influence both your college and financial experience. When you include tasks like visits to the financial aid office, applying for scholarships and FAFSA, and budgeting and figuring out repayment into your routine, you will be setting yourself up for success. Keep these dos and don’ts in mind as you make the most of your freshman year!
*ACH or Automatic Payment Discount is subject to credit approval and verification of application information. When you enroll in automatic payments, an Automatic Payment Discount of 0.25% is applied to credit-based private education loans and a 1.00% discount is applied to outcomes-based private education loans. For Ascent consumer loans made prior to March 3, 2024, the current Automatic Payment Discount is an interest rate reduction of 0.25%. For Ascent consumer loans made after March 3, 2024, the current Automatic Payment Discount is an interest rate reduction of 1.00%. Automatic Payment Discount is not available for delinquent accounts. For more information about Ascent’s consumer loan and benefits, visit Ascent Terms and Conditions. For more information about Ascent’s private education loan and benefits, see repayment examples and review Ascent’s Terms and Conditions and Borrower Benefits.
