Category: Finance, Personal Finance.
My cousin just finished her first semester at a large law school in Washington, D.
Before our holiday dinner, she remarked, "You know, I ll have$ 200, 000 in student debt by the time I m done with my JD. " And, she s not alone. According to a 2005 survey by The College Board titled, "Trends in Student Aid, " 64 percent of college students incurred significant debt prior to graduation. So, what can an average undergrad or graduate student do to avoid racking up excessive, unwanted debt during the education process? A Feb. 2006 article in USA Today stated that the average amount of debt a student will incur has increased by 50 percent over the past 10 years. Several things: Spend the least amount possible on education. With quips such as" College is the best four years of your life" nearly ubiquitous in modern America, it can be easy to justify unnecessary expenditures as" part of the fun. " However, when the student loan payments and credit card bills trickle in after graduation, spending lots of, suddenly money doesn t seem like so much fun anymore.
The first step to cutting college debt costs is to spend as little as you can during school. If you re taking out loans, consider whether a public or a private school will best fit your needs. However, private schools usually give out more generous aid packages( though the application criteria can be rather competitive) . Public schools tend to cost less, and the education you ll receive is likely to be just as good as any you ll receive at a big- name, elite college. Before choosing a loan package, calculate how much you ll need to borrow, and consider loan interest rates. The site includes helpful calculators for your financial planning ease. Check out www. finaid. org, the official Web site of The Smart Student Guide to Financial Aid, for more details.
If you were an academic superstar, or if you ve had a unique path leading up to your college education, consider applying for scholarships. Lesser- known scholarships are also awarded to individuals who are members of particular religious or ethnic groups- or, to those who ve had personal or life experiences that build character. Public and private schools, give out scholarships, both for academics, and writing skills, sports. Fastweb. com offers information about scholarships of all types. Whittle down your living expenses. Register for an account on this Web site and explore your scholarship options.
During school, consider forgoing the dorms. Living at home is one- - but only if you attend a school in or close to your hometown. Room and board costs can comprise a significant portion of your college expenses, and there are often cheaper options. Students who forgo rent and bills completely can save major money during college. Check out CraigsList. org or your school s office of student affairs to find roommates in your college town. Renting a cheap, off- campus apartment with some friends is another good bet( one you ll have to forgo if you re attending a school that does not allow off- campus living) and can work even if you re attending college outside the area in which you grew up. If your parents can t help you foot tuition bills, you might want to consider supplementing your loan funding with part- time work.
These jobs are often pleasant, allow you to meet more people at your school, and typically pay higher wages than traditional student jobs. Most colleges sponsor work- study programs, which offer low- stress jobs for students who meet certain income and savings qualifications. Your campus employment center can help you find a work- study job or a traditional student job that fits your needs and complements your school schedule. Consider working full- time during the summer, if it will fit into your schedule. Or, you can work off- campus- restaurant, retail, bartending, and phone bank gigs all net great income for students. A summer job is a great way to save additional precious dollars that you can use during the semester. Credit cards are not" free money. " You are purchasing something using credit now, and will pay the price for your purchase, plus more money on top of that, later on.
Finally, if at all, avoid credit cards possible. Many students have short or non- existent credit histories, so they are much more likely to be charged higher interest rates on credit card purchases. The consequences can be devastating: Students can amass gargantuan late fees, and the missed payments will adversely affect their credit scores, major purchases, making future- such as homes and cars- difficult to secure at low interest rates. And, many students have trouble meeting credit card payments each month, on top of their other expenses. College is one of the most exciting new chapters in your life. And, you can make, with careful planning it one of the most financially savvy times, as well.
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